DRC's VAT revenue jumps 17% with 'normalized invoice' reform

The Democratic Republic of Congo has seen a significant surge in its value-added tax (VAT) revenues, with collections rising by about 17% in the past three months. Finance Minister Doudou Fwamba announced the encouraging figures in Kinshasa, attributing the growth directly to the effective implementation of the "normalized invoice" reform.

This reform mechanism is designed to improve the tracking of commercial transactions and strengthen the fight against tax evasion. Fwamba stated that average monthly revenues have climbed from between 280 to 290 billion Congolese francs to approximately 340 billion francs, underscoring the positive impact of the measure on public finances. The normalized invoice is a standardized document that identifies commercial operations and the exact VAT amount collected.

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We went from an average of 280 to 290 billion francs to today's 340 billion francs.

The government aims to boost fiscal transparency, reduce revenue losses from fraud, and ensure that collected VAT is properly remitted to the treasury. To further engage citizens in fiscal oversight, a new digital application will soon be launched. This tool will allow consumers to verify the conformity of their invoices and confirm that the VAT paid has been registered with the tax administration.

Following a period of educational outreach and support for businesses, the Ministry of Finance has declared the end of grace periods. The Directorate General of Taxes has been instructed to immediately implement targeted sanctions against companies identified as engaging in VAT fraud. The ministry intends to transition from an advisory approach to strict legal enforcement, relying on the normalized invoice system to increase tax receipts, improve financial governance, and bolster the contribution of taxes to public policy funding.

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With this tax clinic, we have just signaled the end of the grace periods, because we have given enough. The Directorate General of Taxes has been instructed to proceed immediately with targeted sanctions against companies for which we have precise information on VAT fraud practices.