The Ghana Revenue Authority (GRA) has initiated a nationwide Value Added Tax (VAT) compliance campaign aimed at promoting voluntary compliance and accountability. The campaign, launched on September 22, seeks to educate businesses and consumers about their shared responsibility in accounting for taxes legally due to the State. Dr. Martin Kolbil Yamborigya, Commissioner of the Domestic Tax Revenue Division (DTRD) of GRA, emphasized that VAT is a crucial source of domestic revenue used to finance essential public services such as schools, hospitals, and roads.
Despite reforms to the VAT regime, compliance remains a significant challenge, with GRA records showing approximately 60,000 active VAT taxpayers. However, there is a notable gap between potential and actual VAT collections, with the country only collecting about 40% of potentially recoverable VAT. Dr. Yamborigya described this situation as a national challenge that requires collective action from businesses, consumers, and GRA staff.
The objective of the campaign is not to drive businesses out of existence but to create a fair tax system where compliant businesses are not disadvantaged by competitors who fail to meet their obligations. Dr. Yamborigya urged businesses required by law to register for VAT to do so, issue approved VAT invoices, accurately file their returns, and account for VAT collected from customers. He also appealed to consumers to demand VAT invoices whenever they purchase goods or services.
The campaign, themed "Request your VAT Invoice, Help Build Our Nation," will be supported by compliance visits, risk-based audits, data-driven assessments, and intensified taxpayer education. GRA will educate and engage businesses while taking appropriate action against deliberate and persistent non-compliance. Additionally, GRA will strengthen the use of technology, data analytics, and digital services to identify businesses outside the VAT system and improve monitoring.
Dr. Yamborigya called on businesses, professional bodies, associations, the media, consumers, and GRA staff to support the campaign, emphasizing that a stronger culture of voluntary compliance would help close the VAT gap and strengthen domestic revenue mobilization. The Commissioner also highlighted the importance of collaboration in achieving the campaign's objectives.
The Ghana Union of Traders Association (GUTA) has expressed commitment to the implementation of the Tax Compliance Campaign. GUTA President, Clement Boateng, urged the enforcement Unit to attach a human face to the tax compliance exercises, ensuring that the campaign is conducted in a fair and transparent manner.
The nationwide VAT campaign is expected to promote transparency, protect compliant businesses, and help GRA monitor economic activity. By supporting the campaign, stakeholders can contribute to a fair tax system, strengthen domestic revenue mobilization, and ultimately help build a stronger economy. Key stakeholders are expected to play a crucial role in the success of the campaign.
Key points
- The Ghana Revenue Authority has launched a nationwide VAT compliance campaign to promote voluntary compliance and accountability.
- The campaign aims to close the VAT gap, which currently stands at 60%, and strengthen domestic revenue mobilization.
- The campaign will be supported by compliance visits, risk-based audits, data-driven assessments, and intensified taxpayer education.
