The Ghana Revenue Authority has made clear how the Electronic Value Added Tax (E-VAT) system will be implemented.
On Wednesday, May 8, 2024, the Daily Graphic published an item titled “E-VAT in limbo: Retail outlets suck the economy dry—the nation loses billions in revenue”.
A news release from the GRA states that the E-VAT system is being implemented progressively.
The press release said, “The test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritised minimal disruption to taxpayers’ back-office processes.” The conclusion of a highly successful trial involving fifty taxpayers was also discussed.
The statement claims that during the Pilot Phase, VAT revenue grew by more than 58%, totaling new contributions above GH¢384 million. The effectiveness of computerized VAT invoicing, which brought in GH¢124 million, was responsible for 32% of this increase in income.
The primary focus of Phase 1’s initial implementation phase, which is still underway, is onboarding large taxpayers, who bear the 80% burden of VAT contributions.
The GRA took advantage of the opportunity to reassure all parties involved of its steadfast dedication to the complete and prompt deployment of the E-VAT system and to convey its confidence in the significant positive effect that the E-VAT will have on VAT contributions.
It further stated that the Pilot Phase shows how the effective implementation of E-VAT is expected to improve revenue collection, fight tax evasion, and aid in promoting transparency in tax administration.
As “we continue to onboard them onto the E-VAT system,” the GRA used the occasion to express gratitude to each and every client for their cooperation and partnership.
Kindly read GRA’s full press release: