Ghana braces for major changes as the Ghana Revenue Authority revamps VAT rules
The Ghana Revenue Authority (GRA) has rolled out a new VAT regime, and it’s sending waves across businesses and consumers alike. From revised rates to stricter compliance measures, here’s what you need to know to stay ahead and avoid penalties.
WHAT IS CHANGING?
The new VAT regime introduces several key changes:
- Updated VAT rates: Certain goods and services now have adjusted rates that could impact prices at the checkout.
- Digitalization of VAT collection: Businesses are now required to report and remit VAT electronically, making it easier for GRA to track compliance.
- Wider tax base: More goods and services have been brought under VAT coverage, meaning more transactions are now taxable.
WHO IS AFFECTED?
The new rules apply to:
- Small, medium, and large businesses
- Online platforms and digital service providers
- Consumers indirectly, as the changes could affect the cost of goods and services
WHY IT MATTERS
Officials say the new VAT regime aims to:
- Boost government revenue to fund public services
- Streamline compliance for businesses
- Encourage transparency in the economy
But some economists warn that higher VAT could raise living costs if businesses pass the extra cost to consumers.
WHAT YOU NEED TO DO
- Businesses: Ensure your accounting systems are updated to reflect new VAT rates and reporting rules.
- Consumers: Be aware that the prices of some goods and services may change.
- Everyone: Stay informed about exemptions, thresholds, and compliance deadlines to avoid fines.
The GRA insists the new VAT regime is designed to modernize Ghana’s tax system, but for everyday Ghanaians, it’s time to pay attention to how your wallet may be affected.
