The Ghana Revenue Authority has given indications that in the coming days it will arrest and prosecute business owners who fail to issue Value Added Tax (VAT) invoices to customers.
This action is in line with the Authority’s mandate to improve voluntary compliance and is also part of the goal to help the Authority achieve its revenue target of GH¢80.3 billion for the 2022 revenue collection year.
The initiative by the Ghana Revenue Authority follows the roll-out of a special exercise by the GRA to ensure that businesses and customers act in accordance with the VAT Act, 2013 (Act 870) by charging, issuing and accounting for VAT appropriately.
This exercise which began on September 1, 2022 involves the invigilation of shops, mystery purchases and swoops across the country by GRA officials to ensure increased compliance.
Edward Appenteng Gyamerah, Head of the Domestic Tax Revenue Division of the GRA, while explaining the rationale behind the exercise also said revenue mobilization from VAT was low, thus the need for this exercise.
“While VAT collections in Nigeria, Togo, Cote d’Ivoire, South Africa, among others, averaged above 30 per cent of their total revenue, Ghana’s VAT revenue was around 20 per cent of its total collections,” he stated.
He also implored consumers to demand and take VAT invoices when they purchase items that are taxable to make it difficult for sellers to undercut the state.
“Some shop owners ask consumers if they will take invoices, and when the latter say no, the traders sell without the invoice value. This is illegal. It is in contravention of sections 58 and 59 of the VAT Act, which mandate businesses to issue invoices and for consumers,” he added.
