Rwanda is the latest African country to announce plans to tax online services consumed within the country.
This comes a few months after Zimbabwe and Nigeria laid out plans for the collection of taxes from e-commerce and digital companies such as Netflix, Google, YouTube, and Amazon.
According to the Rwanda Revenue Authority (RRA), a proposal has been presented before the Ministry of Finance and Economic Planning from where it will undergo several procedures before implementation if approved.
“When you pay for services such as Netflix, you are using money that you have generated in Rwanda. So, we are asking, why don’t we collect VAT on these services yet they are being paid for by our citizens? If you pay 12 dollars a month for Netflix, why don’t we keep some of that amount at the source here?” Jean-Louis…
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