GRA records 92.4% increase in VAT in 5 months of 2023
By Christabel Oboshie ANNAN, Accra
Various measures instituted by the Ghana Revenue Authority (GRA) has increased Value Added Tax (VAT) by GH₵1.25 billion in the first five months of this year.
This is up from the GH₵649.93 million recorded in the same period last year, indicating a percentage jump of 92.4% in the Authority’s year-on-year.
Some of the measure leading to the improvement VAT invigilation, test purchases, electronic invoicing of VAT (e-VAT), upfront payment of 12.5% by unregistered VAT importers, enforcement by taskforce as well as prosecution of defaulters.
Cumulatively, total domestic VAT for the first quarter of 2023 went up by 76.8% to GH₵3.196 billion compared to GH₵1.808 billion for the corresponding period of last year.
This was revealed in Accra during an enforcement exercise by the GRA and the Criminal Investigations Department (CID) of the Police Service on non-issuance of Value Added Tax (VAT) receipts.
The Assistant Commissioner and Head of Accra Central Enforcement Unit at the Ghana Revenue Authority (GRA), Joseph Annan, reveal these journalists in Accra during an enforcement exercise.
During the exercise, GRA officials arrested three employees from three hotels and one employee from a supermarket and sent them to its headquarters for their statements before they were handed over to the Criminal Investigation Department (CID) of the Police.
Legacy Hotel
The team initially visited the Legacy Hotel at North Kaneshie where an employee was arrested for non-issuance of VAT invoice.
The Hotel has registered for VAT but has not been issuing the invoice.
Records from the hotel were taken by GRA to examine and establish a pre-emptive assessment.
Kegali Hotel and Spa
From there, the team proceeded to Kegali Hotel and Spa at Sakaman Estate where an employee was also arrested for the same offence even though the hotel had registered for Invoice.
Mascot Hotel
The team further journeyed on to Mascot Hotel at Dansoman Exhibition where an employee was also arrested for non-issuance of VAT invoice.
Silver Cloud 68 Supermarket
Finally, the team went to the Silver Cloud 68 Supermarket in Mamprobi Kamara.
Despite registering for VAT, one employee was detained since it does not issue VAT invoices.
Mr Annan said under section 41 of the VAT Act 2013, (Act 870) as amended by Act 1082 and Act 1087, every registered VAT taxpayer was required to issue an electronic VAT invoice with details that are prescribed by the Commissioner General when they provided services or supplied goods.
He stated that it was an infringement on the tax laws if businesses failed to issue the VAT when they are registered with the Authority.
Mr Annan added that the punishment for such infractions was a fine of not more than 100 penalty units or a term of imprisonment of not more than six months, or both, in addition to a payment of penalty of an amount of not more than GH¢50,000 or three times the amount of tax involved.
He noted that the exercise will be extended to other Regions once the GRA makes good waves in Accra.
The exercise is part of the Ghana Revenue Authority’s ongoing nationwide VAT invigilation exercise to ensure tax compliance to retrieve taxes due the State.
