Overview of RRA’s Compliance Improvement Push 2026-2027
The Rwanda Revenue Authority (RRA) has rolled out its 2026/2027 Compliance Improvement Plan (CIP) to improve domestic revenue mobilization, strengthen voluntary compliance, and broaden the tax base. This follows revenues in FY 2025/26 exceeding their targets—Frw 3,956.4 billion compared to the annual goal. (rra.gov.rw)
The CIP highlights specific sectors for intervention: manufacturing, transport & storage, information & communication, education, real estate, construction, and accommodation services including short-term rentals. (rra.gov.rw)
What Businesses Particularly in Hospitality & Rentals Need to Do Now
New Taxes & Obligations in Accommodation Sector
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Tourism tax (3%) applies to all accommodation providers—hotels, guesthouses, lodges, motels, Airbnb, camping sites. Introduced on 1 July 2025, already in force. Providers must: register via Rwanda’s e-Tax system, update Tourism Property Information (number of rooms, room type, owned vs rented), issue EBM invoices, collect, declare and pay the tourism tax monthly by the 15th of the following month. (rra.gov.rw)
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Providers must also be up to date with monthly VAT, PAYE, Withholding Tax (WHT), and RSSB (social security) filings, with same 15th deadline. (rra.gov.rw)
Broader Compliance Measures
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RRA is pushing registration, especially for formerly informal businesses. Many small guesthouses or landlords in tourism were unregistered or under-reporting. Current plan demands registration now; no grace period. (rra.gov.rw)
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Accurate price declaration: invoice must reflect actual rates charged. Mis-invoicing to underpay tax is now a targeted issue. Guesthouse charging Frw50,000 must reflect that in invoicing, not understate on invoices. (rra.gov.rw)
How to Stay Compliant: Practical Checklist
- Register your accommodation service in e-Tax→Update Details→Tourism Property Information, fill required fields by end of next month. (rra.gov.rw)
- Ensure your invoicing system (preferably using Rwanda’s Electronic Billing Machine / EBM) issues correctly identified invoices with real room rate, room type, number of rooms.
- File and pay tourism tax plus other taxes (VAT, PAYE, WHT, RSSB) by 15th day of month following period.
- Be transparent: declare actual income, avoid splitting businesses to avoid taxes—RRA is explicitly targeting under-declaration.
- Attend stakeholder workshops—RRA is delivering outreach to affected sectors. Benefit is getting ahead of compliance checks.
Case Example: Airbnb Host Switching From Informal to Formal
Kamali has two homes used for short-term rentals. Before, she charged market rates but only invoiced lower amounts and didn’t register for tourism tax. Under the new CIP 2026/27:
- She must register for tourism tax via e-Tax.
- Disclose all rooms and room types.
- Use EBM to issue invoices reflecting true rental rate.
- Remit tourism tax monthly by the 15th.
- File VAT/PAYE/WHT if applicable.
Failing to comply may incur penalties, interest, and selection for audits.
Risk Mitigation Strategies
- Hire an accountant familiar with Rwanda’s tax and hotel/hospitality regulations.
- Maintain clear records and screenshots of online registrations.
- Regularly reconcile actual cash flows with invoices and bank statements.
- Use digital payments whenever possible—easier audit trails and visibility.
Conclusion: Rwanda’s compliance enforcement is sharpening. For accommodation, construction, IPC, and professional sectors, what counts is registration, accurate invoicing, and timely filing. Being informal is no longer an option.