What is the Motor Vehicle Road Levy?
The Motor Vehicle Road Levy is an annual fee required by the Rwanda Revenue Authority (RRA) for all registered motor vehicles in Rwanda. This levy is used to fund road maintenance and development projects across the country. Vehicle owners must declare and pay this levy each year, and the deadline for the 2025 levy is 31 December 2025.
As part of efforts to simplify the process, the RRA has introduced several updates to the Motor Vehicle Road Levy declaration process. The new system integrates improved e-services and USSD options, allowing for a more streamlined submission and payment process.
Updated RRA E-Services and USSD Options: What’s New?
In an effort to enhance efficiency and reduce the manual processing burden, the Rwanda Revenue Authority (RRA) has upgraded its e-services platform. Vehicle owners can now declare and pay the Motor Vehicle Road Levy through the RRA’s online portal or via USSD codes for mobile-based transactions. This makes it easier to comply, even for those without regular internet access.
Key Features of the Updated System:
RRA e-Services Portal: Vehicle owners can access the portal to check their vehicle details, declare the levy, and make payments securely.
USSD Options: For mobile-based submissions, the USSD option allows vehicle owners to declare the levy and complete payments via their mobile phones without needing an internet connection.
Increased Compliance Checks: While the new system makes the process simpler, it also involves more stringent checks. These include vehicle-TIN matching and ensuring accurate levy categorization, which can lead to rejections if not correctly followed.
How to Declare the Motor Vehicle Road Levy: Step-by-Step Process
Access the RRA Platform
Begin by visiting the RRA Portal or dialing the USSD code designated for vehicle road levy declarations. If you’re using the online portal, you’ll need to log in to your RRA account.
Enter Vehicle Information
You’ll need to provide your vehicle registration number and other required details. Ensure the vehicle is correctly listed under your Taxpayer Identification Number (TIN).
Confirm Vehicle-TIN Matching
One common error that leads to rejection is the mismatch between the vehicle and the taxpayer’s TIN. Make sure your vehicle is properly linked to your TIN in the RRA system. If there’s an issue, the system will prompt you to correct it before proceeding.
Select the Correct Levy Category
The levy varies depending on the vehicle category (e.g., passenger vehicle, commercial truck, etc.). It’s important to select the correct category to ensure that the proper amount is calculated. Incorrect category selection can result in delayed processing or rejection.
Review and Submit
Double-check all the details entered, including the vehicle registration number, TIN, and levy category. Once you are sure the information is correct, submit your declaration for payment.
Payment
After submitting, you will be directed to the payment section. Vehicle owners can pay through various methods, including mobile money, bank transfer, or using the online payment options on the portal.
Receipt Confirmation
Upon successful payment, you will receive a confirmation receipt, which serves as proof of payment. It’s important to keep this receipt for future reference.
Common Errors That Lead to Rejection
Though the new system simplifies the process, there are several common errors that can lead to submission rejection. These include:
1. Vehicle-TIN Mismatch
One of the most frequent issues is the mismatch between the vehicle registration number and the taxpayer's TIN. If the vehicle is not correctly registered under the right TIN, the system will not allow the declaration to be processed. It’s crucial to ensure your vehicle details are updated in the RRA system.
2. Incorrect Vehicle Category
The levy amount depends on the vehicle category (e.g., passenger vehicle, cargo truck, etc.). Choosing the wrong category can result in an incorrect levy amount, causing delays or rejections.
3. Missing Vehicle Details
Sometimes, vehicle details, such as the registration number or type, may be entered incorrectly. Ensuring accurate information is key to a smooth process.
4. Late Declaration or Payment
The Motor Vehicle Road Levy is due by 31 December 2025. Failing to submit your declaration and payment on time will result in penalties and interest. Ensure you submit your payment before the deadline to avoid unnecessary costs.
How ALSM Ltd Ensures Compliance for Corporate Clients
At ALSM Ltd, we specialize in helping businesses, including those with fleets, ensure that their Motor Vehicle Road Levy declarations are processed accurately and efficiently. Here’s how we help our clients:
Accurate Vehicle-TIN Matching: We ensure that each vehicle is properly linked to your business’s TIN in the RRA system, avoiding common submission errors.
Correct Levy Categorization: Our team helps clients select the correct levy category for each vehicle, ensuring accurate calculations and preventing rejections.
Faster Processing for Corporate Clients: We assist businesses in submitting bulk declarations for fleets, reducing the chances of errors and speeding up the processing time.
Compliance Support: We provide ongoing support to ensure that your business complies with all RRA requirements, helping you avoid penalties and late fees.
Sunny MATETI
Managing Partner
Chartered Accountant and Certified Public Accountant, I excel in managing intricate tasks, adhering to strict deadlines, and providing outstanding results. My expertise is grounded in a solid 17+ years of experience in auditing, accounting, tax, and advisory services.
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