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An update on the introduction of the Electronic Value Added Tax (E-VAT) system has been released by the Ghana Revenue Authority (GRA), who reports that everything is going as planned.
The GRA has reaffirmed its commitment to the thorough and expeditious implementation of the system, which is anticipated to improve revenue collection, combat tax evasion, and increase transparency in tax administration, in response to a recent publication casting doubt on the initiative’s status.
In a news statement dated May 8, 2024, the GRA stated that 50 taxpayers have successfully completed an E-VAT trial program.
The goal of the test and pilot phase was to minimize interruption to taxpayers’ back-office operations while paving the way for an easy and effective rollout of E-VAT.
VAT income increased by more than 58% during the Pilot Phase, amounting to extra contributions exceeding GHs 384 million. 32% of this 384 million gain in income came from the efficient use of electronic VAT invoicing, which generated GHs 124 million in revenue effect.
The Pilot Phase of the E-VAT system deployment has been successfully finished. The system is being implemented in phases.
The goal of the first deployment phase, which is presently under progress, is to enroll major taxpayers, who pay for 80% of the VAT. Phase 1 will now take place from April 22, 2024, to May 31, 2024. As compared to weekly onboarding objectives, the first phase of onboarding has shown very positive first results, with a 175% completion rate thus far.
By the end of December 2024, the onboarding of medium and small taxpayers is the intended goal of the second phase.
The integration of all other VAT-registered taxpayers into the E-VAT system is the goal of the final implementation phase.
The GRA also took the opportunity to reassure all stakeholders of its unwavering commitment to the thorough and expeditious implementation of the E-VAT system and stated its optimism about the important beneficial impact that the E-VAT would have on VAT contributions.
The GRA conveyed its gratitude to all parties involved in the E-VAT implementation process for their collaboration and partnership.
Taxpayers should visit the authority’s website or get in touch with their local GRA office if they have any more questions or need help with the E-VAT system.
In compliance with the revised Value Added Tax Act 870, the GRA has implemented the E-VAT system, which verifies all taxpayer-issued invoices in almost real-time for revenue assurance.
Source: Ghanatodayonline.com
