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

Anthony Kwasi Sarpong, Commissioner-General of the Ghana Revenue Authority (GRA), is optimistic that the introduction of fiscal electronic devices at retail shops under the new Value Added Tax (VAT) reforms will significantly enhance revenue collection. The Ghanaian Parliament has recently endorsed the Fiscal Electronic Device Act, mandating businesses to install certified electronic fiscal devices (EFDs) at their sales points.

These devices will automatically record transactions, calculate VAT, and transmit the data directly to the GRA in real-time, with the goal of reducing the current 40% compliance gap in VAT.

During their inaugural visit after nearly a year in office, the Board of the GRA paid a courtesy call to the Asantehene, Otumfuo Osei Tutu II, to familiarize themselves with their duties and share their achievements. The GRA has already collected over 80 million cedis in the first half of the year, with an ambitious end-of-year target of over 170 million cedis.

In an effort to encourage the inclusion of the informal sector in the tax net, Otumfuo Osei Tutu II urged the GRA to focus on areas that have been less prioritized and stressed the importance of understanding the significance of taxes for those who currently pay little or nothing. He also emphasized the need for collective responsibility and vigilance in ensuring that tax evaders are held accountable.

The GRA is set to roll out the reformed VAT system, which includes the installation of EFDs in mid-size shops and supermarkets throughout the country, with implementation expected to begin in the coming months. GRA Commissioner-General Anthony Sarpong remains confident that the new VAT reform will revolutionize the revenue collection process, potentially increasing the country's revenue by a substantial margin.