The Ghana Revenue Authority has provided clarity on its implementation of the Electronic Value Added Tax (E-VAT) system.
This follows a publication in the Daily Graphic of Wednesday, May 8, 2024, titled “E-VAT in limbo: Retail outlets suck economy dry – Nation loses billions in revenue”.
The GRA in a release said the rollout of the E-VAT system is being conducted using a phased approach.
It pointed out that a highly successful pilot has been completed with 50 taxpayers, adding, “The test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritised minimal disruption to taxpayers’ back-office processes”.
During the Pilot Phase, it said VAT revenue grew by over 58%, representing additional contributions in excess of GH¢384 million. Electronic VAT invoicing efficiency contributed to a revenue impact of GH¢124 million, accounting for 32% of this increase.
For Phase 1, the initial rollout phase is currently ongoing, and is focused on onboarding large taxpayers who account for 80% of VAT contributions.
The revised timeline for Phase 1 is April 22, 2024, to May 31, 2024. Initial results from Phase 1 onboarding have been highly encouraging, with a 175% progress rate so far, as measured against weekly onboarding targets.
The second phase also targets the onboarding of medium and small taxpayers by the end of December 2024.
Regrading Phase 3, the final implementation phase targets the integration of all other VAT registered taxpayers into the E-VAT system.
GRA confident of significant impact
The GRA expressed confidence of the significant positive impact that the E-VAT will have on VAT contributions, and takes this opportunity to assure all stakeholders of its steadfast commitment to the comprehensive and rapid implementation of the E-VAT system.
It added that the successful rollout of E-VAT is poised to enhance revenue collection, combat tax evasion, and help promote transparency in tax administration, as demonstrated by the Pilot Phase.
The GRA took the opportunity to thank all clients for their cooperation and partnership as “we continue to onboard them onto the E-VAT system”.
Joy News
