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In accordance with Section 41 of the Value Added Tax (VAT) Act, businesses in Ghana are obligated to consistently provide VAT invoices. Failing to adhere to this requirement constitutes a violation of the law.
However, a number of businesses in Ghana have been found to be non-compliant, as they have either neglected to register for VAT or failed to issue VAT invoices to their customers.
The Ghana Revenue Authority (GRA) conducted an investigation in Accra, uncovering VAT infractions in 12 businesses.
These businesses were found to have committed several tax violations, including their failure to register for VAT and their omission of VAT documentation.
The affected businesses include New Horizon Coldstore, Glorious Shoppers Delight, Kriskay Kiddies, Uncle Sas Autoparts, and Sunset Glow.
Additionally, the following companies were found to be in violation: T6 Enterprise, OPFA Mart Enterprise, Big Apple Gym/Astroturf, Rhema Batteries, Andy Foods Ventures, Don-Elija Boutique, and Korland Motors.
Following the exercise, Joseph Annan, Assistant Commissioner at the Head-Accra Central Enforcement Unit of the Ghana Revenue Authority, addressed the press. He emphasized that their efforts would extend beyond VAT, encompassing complete tax compliance.
Announcing their intention to ensure comprehensive tax compliance, Annan stated, “Taxation encompasses more than just VAT, so our scrutiny will encompass all applicable taxes for any given taxpayer we visit. We are not limiting our search solely to VAT.”
He further explained that they would conduct a thorough examination of the taxpayers they encounter in each area to determine their eligibility for various tax categories. This approach is aimed at enhancing tax collection efforts, ensuring adherence to all tax categories, and not solely focusing on VAT compliance.
It is worth noting that the Bank of Ghana’s May 2023 Monetary Sector Report indicated a significant increase in domestic VAT collection, rising by 92.4 percent from GH¢649 million to GH¢1.2 billion in the first quarter of the year.
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