The Ghana Revenue Authority (GRA) is warning businesses that do not issue Value Added Tax (VAT) invoices from September 1st, 2022 that they will face prosecution when caught.
Similarly, customers who do not demand and take the invoices will face similar treatment.
The move is to ensure that businesses and customers comply fully with the VAT Act, 2013 (Act 870) by charging, issuing and accounting for VAT appropriately.
This will help the authority to achieve its revenue target of ¢80.3 billion in 2022.
The Commissioner of the Domestic Tax Revenue Division (DTRD) of the GRA, Edward Appenteng Gyambrah, told the media that the GRA will roll out a special exercise in this regard from September 1, 2022 to December 31, 2022.
According to him, his outfit has also picked intelligence that indicates that most consumers do not bother to demand and take VAT invoices, making it easier for sellers to undercut the state.
He also mentioned that some sellers trade without invoices because even if they inform the consumers about it they do not collect the invoices.
Mr. Gyambrah said such practices were in clear violation of sections 58 and 59 of the VAT Act, which mandate sellers to issue invoices and for consumers to receive same.
The VAT collection in Ghana is presently low, with the nation trailing its peers in the sub-Saharan Africa region.
Countries such as Togo, Nigeria, Cote d’Ivoire and South Africa records average VAT collection of 30%, higher than the 20% registered in Ghana.
Source: Ghana News