6 in 10 businesses fail to properly account for VAT – GRA

The Ghana Revenue Authority (GRA) has expressed concern over the low rate of Value Added Tax (VAT) compliance among businesses in Ghana. Commissioner-General Anthony Kwasi Sarpong stated that only about four out of every ten businesses are correctly charging and accounting for VAT, while the remaining six do not register or fail to remit the collected funds to the government.

Sarpong emphasized that the situation poses a significant challenge to Ghana's efforts to increase domestic revenue mobilization. At the 14th Annual International Tax Conference 2026, the GRA highlighted the weaknesses in VAT registration and compliance. The authority is addressing this issue by combining technology with stronger enforcement measures.

The Fiscal Electronic Devices Act will compel most businesses to conduct transactions through approved electronic devices, providing the GRA with enhanced visibility into economic activities in real-time. This technology will enable the Authority to monitor transactions as they occur and reconcile VAT amounts due at the end of each month.

However, Sarpong cautioned that technology alone would not solve the compliance challenges. He noted that the GRA's pilot program had already identified instances where businesses attempted to bypass the system. The Authority plans to combine technological deployment with stronger compliance measures to ensure businesses accurately account for VAT, thereby improving revenue collection.