VAT Archives - Wontumi Online

21 Feb

‘Streamline VAT Or Businesses Will Suffocate’ – AGI Warns Gov’t

CUD Wontumi0 CommentsBusinessAssociation of Ghana Industries (AGI), VAT

The President of the Association of Ghana Industries (AGI) has charged government to urgently reform the Value Added Tax (VAT) system, describing it as “the killer in the room” for local businesses. Dr Humphrey Ayim-Darke underscored the distortions VAT creates in the market, stressing that its current structure is stifling the operations of companies, particularly small and medium-sized enterprises (SMEs). “The major tax issue that we have tabled is the rationalization of the VAT. We believe strongly that it is distorting a lot of operations,” he said on Joy News’ PM Express Business Edition on Thursday, February 20. He illustrated…

19 Mar

IMF Open To Alternatives For Ghana’s Revenue Shortfall After Suspension Of VAT On Electricity

wontumionlineBusinessimf, VAT

The International Monetary Fund (IMF) has expressed readiness to explore alternative measures to address Ghana's revenue shortfall following the suspension of the Value-Added Tax (VAT) on electricity. In response to concerns raised about the tax's impact on households and businesses, IMF Managing Director Kristalina Georgieva assured collaborative efforts with Ghanaian authorities to find a mutually beneficial solution. She emphasized the Fund's sensitivity to public sentiment surrounding the issue and its commitment to bridging the debt gap while consolidating economic gains. During a meeting with selected journalists in Ghana, Georgieva underscored the importance of strengthening the government's fiscal position while acknowledging the challenges…

13 Sep

Businesses Cited For Non-Compliance With VAT Regulations

wontumionlineBusinessGRA, VAT

The AH Hotel in East Legon has been found to be in violation of the country’s Value Added Tax (VAT) regulations. An inspection by the domestic tax compliance taskforce of the Ghana Revenue Authority (GRA) on Tuesday revealed that the hotel does not issue VAT receipts to its customers. The meeting with the hotel’s management lasted for at least 15 minutes, during which it was determined that, aside from VAT, the hotel was compliant with other tax categories. The GRA also found that the Bharidan Royal Hotel, which is adjacent to the AH Hotel, was also in violation of VAT…

21 Jul

Government Slaps 21% VAT On Facebook Advertisements

wontumionlineBusiness, NewsFacebook, VAT

The business arm of Facebook parent company, Meta Business, will from August 1, 2023, impose a total of 21 percent in added taxes on personal and business-related advertisements made on the platform. An email from Meta Business said the charge is based on an order given by the Government of Ghana on the implementation of a new Value Added Tax for goods and services. “Meta is required to charge VAT levies on the sale of ads to advertisers, regardless of whether you’re buying ads for business or personal purposes," the mail read. “All advertisers with a business country of Ghana…

15 Jun

Exempt Exploration Firms From VAT On Drilling And Laboratories – Ghana Chamber Of Mines

wontumionlineBusinessGhana Chamber of Mines, Joshua Mortoti, VAT

The Ghana Chamber of Mines (GCM) has reiterated the need for exploration companies to be exempted from the payment of Value-Added Tax (VAT) on drilling and laboratories. That, the President of the GCM, Mr Joshua Mortoti, said, would help attract exploration capital to the country’s mining industry. Addressing the 95th annual general meeting of the GCM as part of the 2023 and 5th Mining and Energy Summit in Accra at the weekend, he said exploration investment in Ghana had declined significantly in recent years. “This is alarming for a country where mining is critical for forex and fiscal revenue generation,”…

09 Jun

More Businesses In GRA’s Grip Over Non-Issuance Of VAT Invoice

wontumionlineBusinessGRA, VAT

The Ghana Revenue Authority has captured some more businesses over the non-issuance of VAT invoices. The latest swoop saw over 6 businesses being busted for not complying with the GRA’s directive. The officials of the Authority seized some booklets from some shops and closed down some shops as well. The Enforcement action took place on June 9, 2023, at 1. Buildmart Ghana - Adabraka 2. Bedarts cold supplies - Lashibi 3. Excellence boutique - Spintex 4. Yat Ventures - Maamobi The GRA said: “Some booklets were seized and some shops were closed for business. We encourage all members of the…

06 Jun

GRA To Charge Importers Additional 12.5% If They Fail To Register For VAT

wontumionlineBusinessGRA, Importers, Upfront Payment Policy, VAT

The Ghana Revenue Authority (GRA) is cautioning all importers who qualify to register for Value Added Tax (VAT) but have failed to do so will be charged an additional 12.5% on the customs value of taxable goods they import, from June 6, 2023. This follows the implementation of the Upfront Payment Policy. According to the GRA, the upfront payment is charged at importation on taxable goods imported in commercial quantities with a value of ¢200,000 and above. It explained that the Upfront Payment Policy is not a new tax, but a compliance tool to encourage persons required to register for…

05 Jun

AGI Calls For Recalculation Of VAT On Raw Materials

wontumionlineBusinessAssociation of Ghana Industries, VAT

The Association of Ghana Industries (AGI) has called for the recalculation of the Value Added Tax (VAT) on raw materials that are unavailable in the country to reduce the cost of production. The current calculation of VAT, which included the basic VAT and six per cent on the total goods, coupled with high utility charges, were crippling local production and industrialisation, it said. Mr Tsonam Akpeloo, the Chairman of the Association, said this at a breakfast meeting organised by the Ghana Investment Promotion Centre in Tema. He said the high cost of production in Ghana was making competition with other…

29 May

GRA Triggers Upfront VAT Compliance Strategy From June 6

wontumionlineBusinessGRA, VAT

Barring any last minute glitch, the Ghana Revenue Authority (GRA) will on June 6 this year begin implementing a new tax compliance tool referred to as the Upfront Payment of Value Added Tax (VAT). The upfront VAT payment, according to the GRA, is not a new tax but a compliance tool – which law was passed last year, 2022, in the VAT amendment Act (Act 1082) that requires charging an additional 12.5 percent on the Customs value of goods imported by businesses which are mandated to register for VAT but have failed to do so. Speaking to the B&FT at a media…

26 May

4 Lebanese Business Owners, 3 Others Arrested Over VAT Infractions

wontumionlineBusinessGhana Revenue Authority, GRA, VAT

Seven people have been arrested in an ongoing VAT compliance exercise by the Investigation Unit of the Ghana Revenue Authority (GRA) for allegedly failing to issue VAT receipts to customers who patronize their goods and services. The accused persons include four Lebanese business owners and three Ghanaian business managers operating at North Industrial area and North Kaneshie in Accra. The seven business operators, MS Thakkar Overseas Limited, Sika Kobrea, Best Five Company Limited and City Appliances, dealers in the wholesale of beverages, rice and home appliances were picked up by the VAT Investigation Taskforce of the Ghana Revenue Authority for non-issuance of VAT receipts…