Tag: Value Added Tax (VAT)

  • GRA Extends Tax Filing Deadline Following Severe Accra Floods

    GRA Extends Tax Filing Deadline Following Severe Accra Floods

    In a major relief move for businesses and individuals, the Ghana Revenue Authority (GRA) has officially extended the filing deadline for second-quarter taxes and May 2026 statutory returns. The decision, authorized by the Commissioner-General, comes in the wake of severe flooding caused by recent torrential rains across Accra and its surrounding areas.

     

    ​The extension covers second-quarter Corporate Income Tax (CIT), Personal Income Tax (PIT), as well as May 2026 Value Added Tax (VAT), National Health Insurance Levy (NHIL), and Communications Service Tax (CST). Details of this directive were released in an official statement titled “GRA ANNOUNCES EXTENSION FOR FILINGS OF SECOND QUARTER CIT, PIT AND MAY 2026 VAT NHIL CST FOLLOWING HEAVY RAINS.pdf”.

     

    ​Relief Amid Disruptions

     

    ​Under normal circumstances and according to the standard tax calendar, these returns were due on or before the last working day of the month following the taxable period, making the original deadline Tuesday, June 30, 2026.

     

    ​However, acknowledging the severe disruptions the weather has caused to daily operations and transport, the GRA has pushed the deadline back to Monday, July 6, 2026, to support business continuity.

    ​”This extension is a targeted relief measure intended to assist taxpayers affected by the flooding to meet their tax obligations without incurring immediate penalties,” the Authority stated in the official release.

     

    ​Penalty Waivers and Digital Directives

     

    ​Taxpayers who successfully file their returns on or before the new July 6 deadline will not face any late filing penalties. The GRA clarified, however, that standard penalties will immediately apply to any returns submitted after the extended date.

    ​To minimize physical travel through flood-hit zones and prevent further delays, the Authority strongly encourages the public to utilize the official Taxpayer’s Portal and other available digital platforms to file their returns online.

     

    ​For businesses and individuals facing severe operational bottlenecks due to the floods, the GRA has advised contacting the nearest GRA Taxpayer Service Centre (TSC) or local tax office for dedicated assistance.

    ​Commitment to Business and Development

    ​Despite the temporary setback caused by the weather, the GRA re-emphasized its mandate to keep the country’s economic engines running.

     

    ​”The GRA remains committed to maintaining uninterrupted tax administration while supporting businesses during this difficult period and safeguarding the revenue needed for Ghana’s national development,” the statement concluded.

  • GRA rolls out ITAS to drive ‘digital tax’ transformation  …tightens compliance, closes revenue leakages

    GRA rolls out ITAS to drive ‘digital tax’ transformation …tightens compliance, closes revenue leakages

    By Adnan Adams Mohammed

    The Ghana Revenue Authority (GRA) has officially launched a major media engagement drive to introduce its new Integrated Tax Administration System (ITAS), marking a decisive shift toward a data-driven, fully digital tax environment.

    The reform, which covers all major tax regimes, including Income Tax, VAT, Excise Duty, and the Growth and Sustainability Levy, seeks to slash compliance costs for citizens while aggressively closing loopholes that allow tax evaders to operate outside the state’s reach.

    Speaking at the launch event, the Commissioner-General (CG) of the GRA, Anthony Sarpong, emphasized that the primary objective of ITAS is transformation through operational efficiency and robust data integration, rather than the introduction of new financial burdens.

    “ITAS will not bring in any new taxes,” the Commissioner-General stated. “It is an efficient and effective point of view for our interaction with taxpayers… It is going to save taxpayers’ time.”

    Key features of the automated system

    The newly introduced platform represents a complete overhaul of traditional tax administration in Ghana, shifting workflows from manual interventions to digital, event-driven processes.

    [Taxpayer Initiates Process Online]

    [Automated, Event-Driven Workflow] ──► [System Flags Errors Instantly]

    [GRA Analytics / Risk-Based Audit Selection]

    According to the GRA leadership, the platform introduces several critical modules designed to simplify compliance and boost accountability:

    ● Automated Workflow & Verification: Under the new structure, taxpayers initiate processes directly within an electronic environment. The system features automated backend calculations, allowing users to identify and correct filing errors before submission.

    ● Risk-Based Audits: The authority is shifting away from arbitrary, manual audit selections. “There will be an effective risk-based audit selection process,” the CG explained. “There will be a risk management module so that we can select taxpayers based on risk rather than the manual process we do right now.”

    ● Offline Utilities: Recognizing connectivity realities, the platform offers an offline utility tool. Taxpayers can log transactions offline and seamlessly upload the compiled data into the main ITAS database once connected.

    ● Consultant Delegation: A dedicated module allows taxpayers to securely manage, register, and delegate specific tasks or financial profiles to verified tax consultants.

    The system deployment is structured in phases. The initial phase handles core functions like registration, filing, payment processing, and accounting. Subsequent rollouts will introduce e-invoicing, audit management, investigations, and refund processing.

    Tracking assets abroad and clamping down on leakages

    A significant portion of the engagement focused on the GRA’s enforcement capabilities, particularly regarding offshore assets held by Ghanaians and local retail non-compliance. Through the global “Exchange of Information” framework, the GRA is actively receiving annual data from international jurisdictions regarding assets and income earned abroad by Ghanaian citizens.

    The system computes the tax differential between what was paid abroad and Ghana’s higher domestic rates to ensure structural equity.

    Mr Sarpong revealed that during the previous year, the authority targeted the top 1,000 citizens flagged in these cross-border data matches.

    Closer to home, the authority highlighted massive revenue leakages within the Value Added Tax (VAT) space, estimating that out of every ten local companies, only four are fully compliant in collecting and remitting VAT.

    To combat this, the GRA will mandate hardware integration starting in the third quarter of this year. Retail shops and service providers will be required to utilize government-approved devices linked directly to the GRA network.

    “When you buy, the business owner sees their transaction. The GRA government also sees their transaction immediately,” the Commissioner-General warned. “We can now track how much you sold. And therefore, when it comes to reporting to GRA, the taxes you’ve collected, we will be able to know.”

    The authority also noted it has successfully mapped domestic properties geographically, deploying field officers house-by-house to uncover unremitted rent taxes, with initial tracking campaigns already underway in areas like East Legon and the Spintex Road.

    Data privacy and system security

    Amid questions regarding data centralized from other state agencies, such as the Passport Office and the Registrar General’s Department (ORC), the GRA gave strong assurances regarding data protection.

    “The GRA is a signatory to the data protection requirements,” the leadership stated during the Q&A session. “We identify who you are, but the data we are able to get from other sources is protected. If it is breached, GRA will be responsible.”

    The authority confirmed that its core technological infrastructure has been precisely scaled to handle high transaction volumes during this initial piloting phase, with committed plans for ongoing technical reviews as more taxpayers register. A dedicated user help desk is actively running, with the ultimate operational goal of transitioning into a round-the-clock, 24/7 support framework.

    Media as partners in building compliance

    In his closing remarks, Dr. Martin, the GRA Deputy Commissioner for Domestic Tax Revenue Division, thanked the press and underscored the vital role journalists hold as the fourth estate in educating the public on tax developments and tracking state expenditures.

    “Tax revenue remains the only and most reliable source of income for any state to develop,” Dr. Martin concluded. “Loans cannot develop our country. Grants cannot develop our country. The only thing that can develop our country is tax revenue. And we believe that the nation has enough revenue to be able to develop if we are all compliant.”

    The GRA urged all domestic taxpayers to visit its official website portal, where complete ITAS user manuals have been published to guide the public through the system profile updates and self-service options.

     

     

     

     

     

     

     

     

     

  • GRA Enforcement: 4 businesses shut down in major tax compliance crackdown

    GRA Enforcement: 4 businesses shut down in major tax compliance crackdown

    By Adnan Adams and Baraka Amidu

    ​The Ghana Revenue Authority (GRA) intensified its tax mobilization drive on Wednesday, halting the operations of four businesses across major commercial hubs in the Greater Accra Region.

    The enforcement exercise, conducted in the presence of the media, targeted companies failing to comply with Value Added Tax (VAT) regulations and general tax laws.

    ​The swoops covered high-traffic enclaves including East Legon, Adjiriganor, Spintex, and Tema, signaling a renewed commitment by the Authority to plug revenue leakages.

    ​The enforcement team visited four distinct establishments, each cited for varying degrees of tax infractions ranging from non-issuance of invoices to operating without any tax registration.

    ​1. Soul Catering Establishment (East Legon)

    The popular eatery was summoned for failing to issue official VAT invoices. According to the GRA, the team acted on a “tip-off” from an undercover officer. Despite the arrival of the enforcement unit, the business was found to be actively serving customers, leading to an immediate intervention.

    ​2. Janel Spaces (Adjiriganor)

    This rental apartment firm faced a severe charge: collecting VAT from customers without remitting it to the state. Investigations revealed that while the company had initiated the tax registration process, it was never completed. Consequently, the firm had no legal authority to collect VAT on behalf of the GRA.

    ​3. Rision Company (Spintex)

    The nails manufacturing entity, located in the industrial heart of Spintex, was shut down due to consistent non-compliance with tax payment schedules.

     

    ​4. Adagso Company (Tema)

    In a particularly grave discovery, the GRA uncovered a Chinese-owned firm operating from a residential property in the Tema enclave. Adagso Company was found to be illegally retailing industrial machines and chemicals without any form of tax registration or business permits.

     

    ​A “Critical Survival Line”

    ​Speaking to the press during the exercise, Joseph Adjei-Kwei Annan, the GRA Accra Area Manager, emphasized that tax compliance should be viewed as a fundamental pillar of business sustainability rather than a mere legal hurdle.

    ​”We encourage all companies to take tax compliance issues as a critical survival line of their businesses,” Mr. Annan stated. “It is essential to avoid getting into the wrong books of the tax laws, as the consequences—including operational shutdowns—can be far more costly.”

     

    ​GRA’s Warning to Defaulters

    ​The GRA has indicated that these tours will become more frequent as the Authority seeks to meet its annual revenue targets. Officials warned that businesses “hiding” in residential areas or those using incomplete registration status as a shield for non-remittance would be identified and sanctioned.

    ​The affected businesses will remain closed until their outstanding tax liabilities are fully reconciled and penalties are settled with the Authority.

  • GRA sets sights on GH¢360bn revenue target by 2028 …High-Tech VAT enforcement to lead the charge

    GRA sets sights on GH¢360bn revenue target by 2028 …High-Tech VAT enforcement to lead the charge

    By Adnan Adams Mohammed

    The Ghana Revenue Authority (GRA) has officially launched an ambitious roadmap to mobilize a minimum of GH¢360 billion in annual revenue by 2028.

    To bridge the current collection gap, the Authority is moving toward aggressive automation, including the nationwide deployment of physical monitoring devices at retail outlets this year.

    The Commissioner-General of the GRA, Anthony Kwasi Sarpong, announced these targets during a three-day management retreat for the Domestic Tax Revenue Division (DTRD) held in Sunyani. The retreat, themed “Transforming for Impact and Growth: Focusing on VAT Performance and Compliance,” served as a strategic pivot for the Authority’s 2026 operations.

    Closing the 60% VAT gap

    A central pillar of the GRA’s new strategy is the enforcement of the Physical and Electronic Devices Act. This legislation empowers the GRA to install monitoring hardware directly at points of sale to track transactions in real-time.

    Commissioner-General Sarpong revealed a sobering statistic: the current VAT performance stands at only 40%.

    “Out of every 100 potential VAT opportunities, only about 40% are being captured,” Mr. Sarpong stated. “We are determined to change that so that VAT becomes a key anchor in our national revenue mobilization.”

    The automation process, which gained legal backing with the 2025 VAT Law, is designed to eliminate manual loopholes and ensure that every pesewa paid by a consumer reaches the state coffers.

    2026: An internal push for GH¢230 billion

    While the government has set a formal revenue target of GH¢225 billion for the 2026 fiscal year, the GRA management has opted to “stretch” its goals. Mr. Sarpong announced an internal target of GH¢230 billion for the current year, with the DTRD tasked to bring in GH¢163 billion of that total.

    This proactive stance comes as global financial support for developing nations continues to decline.

    “Global revenue support to developing countries like Ghana has dwindled,” the Commissioner-General noted. “It is imperative for the nation to mobilize sufficient domestic revenue to prosecute its development agenda.”

    A call to civic duty

    Beyond technology, the GRA is banking on public cooperation. Mr. Sarpong urged Ghanaians to view tax payment not as a burden, but as a civic responsibility essential for “progressive and sustainable development.”

    Key directives from the Commissioner-General included:

    For Consumers: Always insist on receiving a formal VAT invoice for every purchase.

    For Businesses: Cooperate with the upcoming deployment of electronic monitoring devices.

    For GRA Personnel: Maintain focus on weekly and monthly drives, emphasizing “unity of purpose” to meet the GH¢163 billion DTRD goal.

    Revenue Targets at a Glance

    Year Target Type Amount

    2026 Government Target GH¢225 Billion

    2026 GRA Internal Target GH¢230 Billion

    2028 Long-term Minimum GH¢360 Billion

    As the GRA moves to automate the retail landscape, the success of the 2028 goal will largely depend on how effectively the Authority can convert the “missing” 60% of VAT opportunities into tangible national revenue.

     

     

     

     

     

     

  • GRA breaks down the VAT reform  … Why new VAT Act is not a ‘death sentence’ for prices

    GRA breaks down the VAT reform … Why new VAT Act is not a ‘death sentence’ for prices

    By Adnan Adams Mohammed

    The Ghana Revenue Authority (GRA) is pushing back against public anxiety regarding the newly passed VAT Act 2025 (Act 1151), asserting that the shift from a 4% flat rate to a 20% standard rate does not mandate a spike in the cost of living.

    Dominic Adamnor Nartey, Chief Revenue Officer at the GRA’s Domestic Tax Revenue Division (Free Zones Unit), clarified that while the percentage on paper looks significantly higher, the underlying mechanics of the tax are designed to eliminate distortions not punish consumers.

    Consolidating a “fragmented” system

    During a radio discussion on Thursday, February 19, 2026, Mr. Nartey explained that the Ghanaian tax framework had become a “patchwork” of laws since its last major review in 2013. Over the past decade, constant amendments had left the system fragmented and difficult for both businesses and the GRA to navigate.

    “Act 1151 has come to consolidate all the scattered amendments and simplify the system,” Mr. Nartey stated. “The Act was brought into existence because the last time we had a comprehensive review of VAT was 2013.”

    Pricing vs. taxation

    The core of the public debate centers on the transition from the 4% Flat Rate Scheme—often used by retailers and wholesalers—to the 20% Standard Rate. Traders argue this 16-point jump will make their goods uncompetitive, especially compared to unregistered businesses that do not charge VAT.

    However, Mr. Nartey dismissed the idea that a higher rate automatically equals higher shelf prices. He argued that price hikes are often the result of business pricing decisions rather than the tax structure itself.

    He noted that the standard VAT system allows businesses to claim “Input VAT” (tax paid on purchases), which prevents the “cascading effect” a situation where tax is charged on top of tax, artificially inflating the final price. Under a proper pricing model, the GRA insists the impact on the final consumer should be minimal.

    “If you build your price according to what the GRA expects you to do, there is no difference [in the final price],” he added.

    Leveling the playing field

    The GRA acknowledged concerns that VAT-registered businesses are being undercut by unregistered competitors. To address this, the reform aims to streamline administration, thus making it easier for businesses to comply and file returns; correct distortions thus ensuring that the tax is applied transparently across the supply chain and enhance mobilization, thus strengthening Ghana’s domestic revenue base to reduce reliance on external borrowing.

    As the public discussion continues, the GRA remains firm that Act 1151 is a necessary step toward a modern, efficient fiscal regime. The challenge now lies in ensuring that businesses adopt the “proper pricing methods” Mr. Nartey referenced to keep goods affordable for the average Ghanaian.

    Fact vs. Myth:

    Feature Old 4% Flat Rate System New 20% Standard Rate (Act 1151)

    Input Tax Credit No. Businesses could not claim back VAT paid on their own purchases. Yes. Businesses deduct the VAT they paid (Input Tax) from the VAT they collect.

    Tax on Tax High. Leads to “cascading,” where tax is added to a price that already includes tax. Low. The credit system ensures tax is only paid on the “Value Added” at each stage.

    Price Impact Hidden in the cost of goods. Visible, but offset by the ability to recover costs.

    Complexity High (due to fragmented amendments). Low. Consolidated into a single, streamlined legal framework.

    The “Input credit” advantage

    The primary reason the GRA argues that prices shouldn’t skyrocket is the Input-Output mechanism. Under the old 4% flat rate, that 4% became a “sunk cost” for the business, which they often passed directly to the consumer. Under the 20% standard rate, businesses can reclaim the VAT they paid to their suppliers.

    For example, if a retailer buys an item for GH¢100 (plus GH¢20 VAT) and sells it for GH¢150, they collect GH¢30 in VAT. However, they only send GH¢10 to the GRA (GH¢30 collected minus the GH¢20 they already paid). This prevents the “cascading” effect that traditionally drives up shelf prices.

    Next steps for the public

    The GRA is expected to begin a series of nationwide sensitization workshops to teach small-to-medium enterprises (SMEs) how to adjust their accounting software for the new rate.

     

     

     

     

     

     

  • GRA unleashes 26-Member Strike Force to tackle 60% VAT gap

    GRA unleashes 26-Member Strike Force to tackle 60% VAT gap

    By Adnan Adams Mohammed

    The Ghana Revenue Authority (GRA) has officially declared war on tax evasion, inaugurating a specialized Compliance and Enforcement Unit to chase down businesses failing to remit Value Added Tax (VAT).

    The move comes after a startling audit revealed that nearly 60 out of every 100 businesses visited in recent months are either not registered for VAT or are collecting the tax from consumers without remitting a single pesewa to the state. This “leakage” is a major hurdle for the GRA as it pursues a massive GH¢225 billion revenue target for 2026.

    The new 26-member team, housed under the Domestic Tax Revenue Division (DTRD), has a singular mandate: to ensure the reformed VAT Act, 2025 (Act 1151), which took effect on January 1, is strictly followed.

    Commissioner-General Anthony Kwasi Sarpong warned that the era of “voluntary ignorance” is over.

    “Others take from customers but fail to remit to the GRA. Our eyes are open, and we are coming with the full strength of our service,” Sarpong stated. “Those who cooperate will be dealt with professionally, but we must close this gap.”

    Carrots and Sticks: The 2026 Strategy

    The GRA isn’t just relying on enforcement; it is combining the “stick” of the new task force with the “carrot” of modern technology and rewards.

    ● The Stick: The Enforcement Team will conduct unannounced market sweeps and audits to identify defaulters.

    ● The Carrot: A National VAT Reward Scheme is launching this year, incentivizing customers to demand receipts in exchange for prizes, effectively turning every consumer into a tax inspector.

    ● The Tech: Increased automation and E-VAT APIs are being deployed to make it harder for businesses to hide transactions.

    Key 2026 VAT Reforms Previous Status Current Status (Act 1151)

    Registration Threshold GH¢200,000 GH¢750,000 (for goods)

    Effective VAT Rate 21.9% 20%

    COVID-19 Levy 1% Abolished

    Flat Rate Scheme 3% Retail Abolished

    A Call for Professionalism

    The Commissioner for Domestic Tax Revenue, Dr. Martin Yamborigya, urged the new team to maintain high ethical standards while being firm. He stressed that while the goal is revenue mobilization, the rights of taxpayers must be respected.

    “The introduction of the new VAT Act reflects the government’s determination to modernize our tax system,” Yamborigya said. He encouraged businesses with genuine challenges to engage the GRA directly rather than waiting for the enforcement team to arrive at their doorstep.

    Impact on the 24H⁺ Programme

    The success of this enforcement drive is critical to funding the government’s 24H⁺ (24-Hour Economy) initiatives. With the removal of the cascading tax effect, compliant businesses are now able to claim GETFund and NHIL as input credits a move designed to reduce production costs and, ultimately, lower prices for the Ghanaian consumer.

     

     

     

     

  • GRA confirms widespread compliance of new VAT regime  …delivers GH¢6.5bn relief to households as prices ease

    GRA confirms widespread compliance of new VAT regime …delivers GH¢6.5bn relief to households as prices ease

    By AdnanAdams Mohammed

     

    The Ghana Revenue Authority (GRA) announced that the government’s recently implemented VAT reforms have successfully eased cost pressures on consumers, effectively returning an estimated GH¢6.5 billion to households through price reductions.

    The sweeping changes have lowered the effective VAT rate to 20%, resulting in an average 1.9% fall in the price of goods and services since the reforms took effect.

    The positive assessment follows a GRA compliance monitoring exercise in Accra’s Spintex enclave, where officials found businesses had successfully recalibrated their systems to reflect the new tax structure.

    From Reform to Relief

    The comprehensive VAT reform package involves reducing the main VAT rate, abolishing the COVID-19 Health Recovery Levy, and adjusting thresholds for smaller businesses.

    Speaking during inspections at major retail outlets including Palace Mall, Melcom, and Orca Décor, GRA Commissioner-General Anthony Sarpong expressed satisfaction with the implementation.

    “We are satisfied that all the shops that we have visited have actually configured their systems and they are applying the new VAT rates,” Sarpong stated.

    Crucially, consumer feedback gathered during the exercise validated the government’s projections regarding financial relief.

    “We note that their satisfaction with the reduction in the rate of the VAT, which in essence affirms what the Minister of Finance announced that the reforms is giving back over 6.5 billion into the pockets of Ghanaians,” Sarpong added.

    Shoppers Notice the Difference

    Checks at various retail outlets across Accra confirmed that the abolished levies are no longer being applied on point-of-sale receipts. Shoppers expressed satisfaction with the modest but welcome reductions.

    Mercy Kobi, a consumer, noted the immediate impact on her purchases: “I feel so happy because the last time I purchased, I remember how much I paid because of the levies. Now I only pay NHIL, GETFund and VAT.”

    Another shopper observed that the relief becomes more apparent with bulk purchases, reinforcing the government’s aim to ease financial pressure on households and boost private sector consumption.

    Call for Compliance to Drive National Growth

    While celebrating the early successes, Commissioner-General Sarpong used the opportunity to appeal for continued vigilance and voluntary compliance from both businesses and consumers.

    He urged businesses to implement the revised VAT framework correctly and issue tax invoices, while calling on consumers to demand those invoices with every purchase to aid enforcement.

    Sustained compliance, he stressed, is critical to mobilizing the revenue needed to support President John Dramani Mahama’s 2026 economic vision, which is focused on growth, job creation, and national transformation.

    “When we work responsibly as businesses and also act responsibly as consumers, together we will raise the needed revenue that is needed to develop the nation,” Sarpong concluded.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • GRA and GUTA Joint Press Release on Implementation of VAT Act, 2025 (Act 1151)

    GRA and GUTA Joint Press Release on Implementation of VAT Act, 2025 (Act 1151)

    The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) held a joint meeting on Wednesday, 7th January 2026, to discuss the implementation of the Value Added Tax Act, 2025 (Act 1151).

    The meeting aimed to deliberate on the impact of the new legislation on traders, particularly GUTA members who previously operated under the VAT Flat Rate Scheme.

     

    Key agreements reached include:

    1. All taxpayers, including GUTA members, must charge and account for VAT at 20% (comprising VAT, NHIL, and GETFund Levy) by the end of the first quarter of implementation, as per the law. This allows GUTA to provide feedback to GRA on concerns raised.

    2. A joint technical team of GUTA and GRA will address sector-specific challenges, including VAT record-keeping, input VAT claims, and VAT calculation, making recommendations for further review.

    3. Nationwide education and sensitization programs will guide traders through the transition to ensure compliance with the new VAT regime.

     

    GRA reassured traders6 of its support for a smooth transition, while GUTA encouraged members to comply with the new law, prioritizing traders’, consumers’, and national developmentH interests.

     

    The joint release was issued by the Ghana Revenue Authority (GRA) and Ghana Union of Traders’ Associations (GUTA).

  • GRA emphasizes tax compliance in 2026, unveils amended VAT Act

    GRA emphasizes tax compliance in 2026, unveils amended VAT Act

    The Ghana Revenue Authority (GRA) has kicked off 2026 with a renewed focus on tax compliance, as Commissioner-General Anthony Sarpong declares the year “a year of compliance”.

     

    In his New Year message, Sarpong urged taxpayers to comply with tax laws, emphasizing the GRA’s commitment to building a fair and trusted tax system.

     

    The amended Value Added Tax (VAT) Act, effective January 1, 2026, aims to simplify the tax system, consolidate tax laws, and improve compliance through digitization.

     

    Key changes include:

    – VAT Rate Reduction: The VAT rate has been reduced from 21.9% to 20%

    – Abolition of COVID-19 Levy: The COVID-19 Health Recovery Levy has been abolished

    – Decoupling of VAT on GETFund and NHIS Levies: VAT on GETFund and NHIS levies has been decoupled

    – Increased Registration Threshold: The VAT registration threshold has been increased from GH¢200,000 to GH¢750,000

    – Digitalization: The GRA will leverage technology, including an Integrated Tax Administration System (ITAS) and Artificial Intelligence5 (AI) system for Customs valuation

     

    Meanwhile, Mr Sarpong at a recent Editors’ forum in Accra highlighted the GRA’s plans to leverage technology, including the rollout of an Integrated Tax Administration System (ITAS) by March 2026 and an Artificial Intelligence (AI) system for Customs valuation.

     

    The authority will also intensify public education and sensitization on the new tax regime.

     

    “Improved stakeholders’ relation and tax compliance are key to our success,” Sarpong emphasized, urging taxpayers to understand the changes and comply with the new rules.

     

    The GRA aims to simplify tax experiences for businesses, making compliance easier and more efficient.

     

    The amended VAT Act is expected to boost revenue mobilization, support economic growth, and enhance Ghana’s development agenda.

     

    By Adnan Adams Mohammed

  • GRA denies targeting local businesses in tax enforcement drive

    GRA denies targeting local businesses in tax enforcement drive

    The Ghana Revenue Authority (GRA) has pushed back against claims that its intensified tax enforcement disproportionately targets local businesses, arguing the outcome reflects the structure of the economy rather than policy bias.

    Assistant Commissioner for Enforcement in the Accra Central Area, Joseph Adjeikwei Annan, said the drive aims to improve compliance and broaden the tax base, not single out indigenous enterprises.

    “Local businesses make up the bulk of businesses in Ghana, so enforcement actions will naturally affect more of them,” Annan explained. “It’s not that we’re targeting our own; it’s just that there are more local businesses out there.”

    The GRA has intensified tax law enforcement, warning that businesses breaching tax obligations could face severe sanctions, including arrest and prosecution. The move aims to tighten compliance and improve revenue mobilisation.

    Meanwhile, the Importers and Exporters Association of Ghana (IEAG) expects the cost of doing business at ports to reduce significantly from next year, following government’s tax relief measures.

    The removal of the COVID-19 Health Recovery Levy and Electronic Transfer Levy, plus a VAT rate reduction from 21.9% to 20%, will lower transaction costs.

    “The tax reforms are a major boost for businesses, especially import and export operators,” said IEAG Executive Secretary Samson Asaki Awingobit. “We’ll pass the benefits to consumers through reduced prices.”