Assessing the Effect of Electronic Billing Machine Invoicing On Value Added Tax Compliance in Rwanda (2015-2020). A Case of Musanze District Taxpayers

The general objective of this study was to assess the effect Electronic Billing Machine invoicing on tax compliance
in Rwanda particularly in Musanze district taxpayers. The study analyzes the three specific objectives as to analyze
the perception of taxpayers on adoption of electronic billing machine in Musanze district, to analyze the level of
value added tax compliance in Musanze district for the period of 2015 up to 2020 and to find out the relationship
between using Electronic Billing Machine on invoicing and tax compliance. Both primary and secondary data were
used in this study where questionnaires have been distributed to 100 respondents from target population of 669 of
Musanze district taxpayers. Simple random techniques were used to select 100 taxpayers, questionnaires and
documentation methods were used to collected data relating to this topic. Data analysis was done by using SPSS
vision 20 and Microsoft excel. The findings on the perception of taxpayers on adoption of electronic billing
machine invoicing among Musanze district taxpayers, the overall view of respondents on accuracy on reporting,
simple and faster to use EBM, timely reporting, security concerns services, check statement and payment process
services shows that majority of respondents was rated with high mean score of 4.49 which implies a strong
evidence of the existence of the fact and standard deviation of 0.64 great than 0.5 which implies that respondents
have heterogeneity perception on the use of electronic billing machine invoicing among Musanze district taxpayers.
For tax compliance the overall view of respondents on the payment compliance was rated with a high score 4.07
which implies with a strong standard deviation equal to 0.56 which implies that respondents have the same view
regarding to the level of payment compliance.
Also the study was confirmed that there is statistically significant relationship between use of Electronic Billing
Machine in invoicing and tax compliance in Musanze district. This was confirmed with a correlation coefficient of
(r=-0.731*, P-value=0.014<0.05. The study concluded that increase of using Electronic billing machine invoicing
helps the taxpayers to comply their tax and helps the taxpayers to reduce the conflicts among taxpayers and tax
authority