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E-VAT Invoice collectible by large taxpayers takes effect

Ghana Revenue Authority (GRA) has begun the full implementation of an electronic or e-invoicing system for the Value Added Tax (VAT). The rollout plan, which took effect on 1st October 2022, targets about 600 large taxpayers that generate over 90% of VAT revenue.

The policy according to GRA, will be expanded to cover medium-sized taxpayers by December 2023 and further extended to all businesses in 2024.

Head of the Domestic Tax Revenue Division (DTRD) at GRA, Edward Appenteng Gyamerah, who briefed the media last Friday explained that the initiative, which has been designed to block various abuses that the manual invoicing system is prone to, is expected to increase revenue generation through VAT contributions from the current 18% to about 30%.

The move which is part of GRA’s tax digitalisation agenda follows widespread abuses shortchanging the state millions of cedis in tax evasion over the years.

Last week, the Ghana Revenue Authority, as part of its nationwide operation clamped down on some businesses in Accra including the seizure of documents and equipment from alleged tax defaulters in Accra for failing to issue Value Added Tax, VAT, invoices.

GRA officials during an unannounced visit to three Auto mechanic shops, at Adenta and Madina enclave, detected that the shops had registered with the Authority but were not issuing the VAT invoices.

Head of the Domestic Tax Revenue Division explained that to help deal with the menace, GRA through the sector Ministry as amended Section 42 of the VAT Act, (2013) Act 870 to make e-invoicing compulsory and the only medium for issuing VAT invoices.

Unlike the manual system, the e-invoicing system allows the GRA to monitor live transactions in companies where it has been deployed, thereby making it impossible for taxpayers to either under invoice or avoid the payment of VAT.

On the mode of implementation, Mr. Gyamerah said the system would be deployed using two different routes.

GRA will connect its software for generating the e-VAT invoices into the platforms of businesses that have their own platform for issuing VAT.

If they do not have such systems in place, GRA will install theirs to facilitate collections at no cost.
On the e-TCC, he said businesses only needed to enter their details into the e-TCC portal created by GRA for the certificates to be generated automatically.

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