Rwanda: New Tracking Code System Introduced for Vehicle Ownership Transfer

The Rwanda Revenue Authority (RRA) has introduced a new digital verification feature in the e-tax motor vehicle module aimed at improving transparency and compliance in vehicle ownership transfers.

In an announcement issued on Monday, May 11, the tax authority said the new measures require sellers to generate a tracking code to facilitate verification during vehicle ownership transfer transactions.

ALSO READ: Deadline to clear pending vehicle ownership transfers extended

"Sellers are now required to generate a Tracking Code that has to be shared with the buyer and the private notary," RRA said, adding that the code will help verify whether a vehicle has tax arrears, caveats, or any other issues that could hinder the transfer process.

The authority also directed private notaries to use a standard sale agreement template available for download from the system when notarising vehicle sale transactions.

This development is part of broader efforts to address persistent challenges linked to protracted vehicle ownership transfer processes, which authorities say have contributed to legal disputes, tax compliance gaps, and difficulties in road traffic enforcement.

ALSO READ: Nearly 500 owners risk losing vehicles over incomplete transfers

The announcement comes a week after RRA extended the deadline for pending vehicle ownership transfers and de-registration until June 30, giving vehicle owners additional time to regularise their records.

The extension followed concerns raised by motorists facing difficulties in completing the process, as well as efforts to resolve hundreds of unresolved ownership cases.

Earlier this year, RRA, in collaboration with Rwanda National Police, issued a notice to 496 registered vehicle owners to complete ownership transfers or risk losing ownership rights to current holders where proof of sale exists.

Officials have previously said incomplete ownership records complicate tax collection and traffic law enforcement, with some former owners continuing to receive notifications about tax obligations and traffic fines for vehicles they sold years ago.

Read the original article on New Times.