The Commissioner-General of the Ghana Revenue Authority (GRA), Mr Emmanuel Kofi Nti, has said in accordance with the amendment of the Value Added Tax (VAT) of Act 954 2017, a modified Commissioner-General’s invoice comprising VAT, National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund (GETFund) Levy (GFL) had been designed and would soon come into use.
As a result, he said taxpayers authorised to use computer-generated invoices were to modify their accounting software to accommodate those levies.
“Pending the coming into use of the modified Commissioner-General’s invoice, taxpayers can continue to use the old VAT invoice,” he said at a press briefing on August 9.
He engaged the media on the tax policy measures introduced by the government in the 2018 mid-year budget review.
The tax review was meant to ensure that the government ended the year meeting its revised revenue target of GH¢51 billion.
Mr Nti, however, assured entities that were recently appointed as VAT withholding agents by the Commissioner-General that they would continue to account for withholding VAT/NHlL/GFL at seven per cent of the taxable value to the national tax collection and administration body.
He said it was important for the public to know that with the amendments, VAT-registered taxpayers could not claim the NHIL and the GFL charged on their purchases as input tax.
Tax policy measures
Explaining the details of the new tax policy measures, Mr Nti said the changes were the restructuring and delinking of the NHIL and the GFL from the main VAT and the introduction of a new tax affecting the personal income tax rates of high-income earners.
That, he said, meant that the rate for the VAT was 12.5 per cent for the VAT Standard Rate Scheme.
Meanwhile, with the grace period for income earners to regularise their tax obligations with the GRA expiring this month, Mr Nti said the national tax collection and administration body would get tough on defaulters.
As a result, he encouraged businesses and all income-earning persons to take advantage of the tax amnesty policy before it expired on August 31.
“Let me use this opportunity to remind businesses and all income-earning persons that GRA will go after all persons who failed to take advantage of the opportunity,” he said.
Mr Nti assured the public that the appropriate sanctions provided in the various tax acts, including prosecutions, would be applied on tax evaders and defaulters “to make sure that all citizens contribute their quota to nation building”.
The Tax Amnesty Act, 2017 Act (955), provides an opportunity for all income-earners to regularise their tax affairs with the GRA to put businesses on a legitimate footing and avoid sanctions and legal consequences in the future.
It applies to taxpayers and potential taxpayers who have defaulted in registration with the GRA, filing of tax returns by due dates, paying taxes on due dates and making full disclosure of financial reporting to discharge their obligations voluntarily in exchange for forgiveness of and /or in some cases the tax, interests and penalties without fear of prosecution. — GB