GRA Bags GH¢1.2 Billion In VAT Collection From January To May 2023

Value Added Tax (VAT) collections by the Ghana Revenue Authority (GRA) from January and May this year amounted to GH¢1.2 billion.

This represent a 92.4 per cent increase of the GH¢649.93 million collected within the same period last year.

According to Assistant Commissioner Joseph Annan, Manager of the Accra Central Area Enforcement Unit of the GRA, the increase in VAT receipts was due to the VAT enforcement exercise and other measures instituted by the Authority to encourage tax compliance.

He was speaking to the media in Accra on the sidelines of a VAT enforcement exercise undertaken on August 15, 2023.

“We have made phenomenal gains with regards to VAT collection. We have recorded a 92.4 per cent year on year increase from GH¢649.93 million to GH¢1.2 billion.

Regular enforcement exercise and other measures including e-VAT introduction, VAT invigilation and mystery shopping have resulted in the huge improvement,” he stated.

Yesterday’s exercise saw four manag­ers of Legacy Hotel at North Kaneshie, Kegali Hotel & Spa at Dansoman, Mascot Hotel, also at Dansoman Exhibition and Silver Cloud 68 Supermarket located at Mamprobi-Kamara arrested for failing to issue VAT invoices to clients.

Assistant Commissioner Annan said the four would have their statements taken to enable further investigations by the officers of the GRA.

He explained that, although the above businesses were registered for VAT, checks by the GRA indicated that they were not issuing VAT invoice, thereby evading the payment of VAT.

The actions of the operators, he said was in violation of section 41 of the VAT Act which mandates a registered business to issues VAT invoice at all time.

“The arrested persons would be hand­ed over to the police, investigated and charged for their actions.

Officers of the Criminal Investigations Department of the Ghana Police Service would take the statement of those arrested after which the preemptive assessment would be established and the businesses would be required to pay immediately.

“After that the business would be rec­ommended for full audit while the police continue with its investigations,” he said.

The Authority, he noted, would con­duct an assessment of the financial and transaction records of the businesses and conduct a reconciliation to determine the revenue loss as a result of the infraction.

Per the law, Assistant Commissioner Annan, said the businesses would be made to refund the revenue as well as the corresponding penalty which was set at a minimum of GH¢50,000.

 

 

 

 

Source: ghanaiantimes.com.gh

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