Making use of a unique administrative data set that spans the period 2012- 2019 and covers the universe of administrative tax filings in Rwanda, this paper investigates both the direct and (through tax audits) the indirect impact of the introduction of e-invoicing on firms’ reporting behaviour...

This paper incorporates the incentives of tax inspectors into an equilibrium model of tax compliance and enforcement when the taxpayers' true income is private information (adverse selection) and the effort of tax inspectors to verify reported income is unobservable (moral hazard). It...