New physical and electronic devices for VAT implementation will be a game changer – GRA boss

The Ghana Revenue Authority (GRA) is optimistic that the implementation of fiscal electronic devices (EFDs) will revolutionize the country's Value Added Tax (VAT) system. The Commissioner-General, Anthony Kwasi Sarpong, believes that these devices will significantly improve revenue mobilization by recording every transaction, automatically calculating VAT, and reporting directly to the GRA in real-time. This move aims to close the compliance gap in VAT performance, which currently stands at around 40%.

Recently, Parliament passed the Fiscal Electronic Device Act, mandating businesses to install certified EFDs at their points of sale. These devices will streamline the VAT process, enabling the GRA to track and collect taxes from businesses more efficiently. The board of the GRA recently paid a courtesy visit to the Asantehene, Otumfuo Osei Tutu II, to introduce and update him on their mandates and achievements in the past year.

Otumfuo Osei Tutu II called for the expansion of the tax net to include the informal sector, urging the GRA to avoid revenue leakages. He emphasized the importance of educating people about the significance of paying taxes, stating that if they understand its value, they will likely comply. The Asantehene also cautioned against selfishness within the GRA and encouraged collaboration for Ghana's benefit.

The new VAT reform, set to launch in the coming months, will begin with mid-size shops and supermarkets across the country. Commissioner-General Sarpong is confident that this initiative will generate increased revenue for national development. George Kweku Ricketts-Hagan, Board Chair of the GRA, highlighted the advantages of the new taxation system, including the Publican AI, despite initial resistance from the business community.

He believes that the successful implementation of this reform will contribute to revenue collection for national development.