Ghana Commences e-VAT Implementation

Ghana Commences-e-VAT Implementation
  • Ghana’s e-VAT registration kick-off!

The day is finally here as Ghana commences e-VAT Implementation through the Ghana Revenue Authority, GRA.

E-VAT which stands for electronic value-added tax (e-VAT) implementation will begin its first phase of implementation starting today March 31 to June 1, 2023.

Starting today, the plan is to integrate some 600 taxpayers in the Large Taxpayer Office (LTO) into the Commissioner-General’s invoicing system.

Ghana Commences e-VAT Implementation: More on the First Phase

This kick off is coming after the tax authority had previously integrated 50 targeted taxpayers into the system.

While speaking at a Quarterly Tax Dialogue Series hosted by the UK Ghana Chamber of Commerce (UKGCC) and PwC Ghana in Accra, the Assistant Commissioner – VAT Administration, Philip Acquah explained that the intended 600 taxpayers pay 90% of total VAT revenue and a total of 80% of the country’s total domestic tax revenue.

Other Phases of The Initiative

Mr. Acquah mentioned that the second phase of the plan will begin immediately after the conclusion of the first and will come to an end by the fourth quarter of 2023.

Unlike the first phase, the second would include about 1000 medium taxpayers.

He continued that the third phase of the initiative will commence by the end of December 2024 and will include all other VAT-registered taxpayers.

Aims of The Initiative

According to Mr. Acquah, one of the aims of the three-phased initiative is to validate the large informal sector and to uncover the misstatement of tax.

He noted that the manual invoicing regimes were fraught with issues such as forgery, and lack of data for effective compliance among others.

The implementation of the electronic invoicing system will help correct this by promoting an impartial and equal VAT Regime.

Mr. Acquah also mentioned that the GRA is working towards leveraging the initiative to ameliorate tax collections.

The tax collector has set a revenue target of GH¢206billion for the year 2023 and currently generates about GH¢23.4billion from value-added tax (VAT).

He further disclosed that compared to some other African countries, Ghana’s VAT performance is unimpressive.

What is E-VAT?

According to Mr. Acquah, the E-VAT, which is also referred to as the Electronic Invoice System converts the manual invoice issuance process (paper-based) into an electronic format.

It also allows for these invoices (including debit and credit notes) to be exchanged electronically.

In Conclusion

As Ghana commence e-VAT implementation, it is important to note that compliance will play a key role to its make or mar.

Compliance with new tax laws can help to ensure that the government is receiving the tax revenue that it needs to operate and provide essential services to its citizens. This is especially important in the case of new tax laws, which may be designed to address specific areas of concern or to generate additional revenue for the government.

Furthermore, complying with new tax laws can also help to improve an individual or organization’s reputation and credibility. Demonstrating a commitment to compliance can help to build trust with customers, clients, and other stakeholders, which can ultimately lead to increased business and opportunities.

Africa Tax Review will always keep you updated as event unfolds.

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