The reform on the standardised invoice has the merit of enabling tax authorities to better monitor and collect consumption tax, which is the value added tax (VAT); in any case, this is the primary objective of the reform.
From the taxpayers’ perspective, the reform sounds like a challenge in terms of compliance and overall business management: choosing internal tools and solutions to use, managing risks related to exchange rates for invoices issued in Congolese francs in an economic environment where the US dollar is the preferred currency, restructuring processes to achieve flawless compliance…
The Standardised Invoice
The standardised invoice is an invoice issued using electronic fiscal devices (EFDs) connected to the tax administration, allowing it to collect information mainly related to VAT in order to properly monitor deductions and payments.
Electronic fiscal devices can be divided into two main groups:
- Online devices (e-EFDs): e-UF (Online Billing Unit), e-MCF (Billing Control Module)
- Physical devices (EFDs): UF (Billing Unit) and MCF (Billing Control Module).
The taxpayer will therefore have the choice to opt for one or more solutions:
- e-UF: The Online Billing Unit is an online platform made available to taxpayers to issue invoices and generate sales reports free of charge. The taxpayer simply needs to have a tax number and be subject to VAT. This solution requires a stable internet connection.
- UF: They may also opt for a physical billing unit obtained from a supplier approved by the tax administration. This option is more suitable for micro-enterprises operating in retail.
- e-MCF: When the taxpayer has an internal electronic billing system (EBS) they wish to keep, they must first request approval for their billing system. Once approved, they can opt for an e-MCF, which is an online module that interfaces with their billing system to standardize invoices produced by it through a data-sharing connection between the two systems. As with e-UF, the taxpayer must ensure a stable internet connection. If this stability cannot be guaranteed, they may then opt for the last option:
- • MCF: A physical billing control module that allows, through a direct connection with the internal billing system, the standardization of invoices issued internally. Since it is rechargeable and can store data and transfer it to the tax administration when the connection is restored, it seems to be the best solution when electricity and internet availability cannot be guaranteed.
Even if one chooses a dematerialized EFD, it is always preferable to have a physical device in parallel.
Other Considerations
We believe that the consequences of the reform are not limited to consumption tax (VAT). It will be a powerful aid to tax control in general:
- It is obviously easy to reconstruct turnover when the tax administration has all the VAT information.
- Controlling part of the expenses incurred on services rendered and goods delivered by resident providers or those with a permanent establishment in the DRC will be easier for the tax administration.
This reform therefore deserves an appropriate strategic positioning, a suitable strategy to ensure compliance with a tax system that is itself evolving, and for this, adequate support.
