GRA, GUTA reach agreement on smooth rollout of new VAT Act

The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) have pledged to work together for a seamless transition to the new Value Added Tax Act, 2025 (Act 1151), following a joint consultation meeting held in Accra yesterday.

The meeting, convened by the GRA Commissioner-General Anthony Kwasi Sarpong and management alongside GUTA’s President, Clement Boateng and executives, focused on the implications of the new legislation, particularly for traders who previously operated under the VAT flat rate scheme.

In a joint press release issued after the discussions which was sighted by the Graphic Business, both parties outlined key agreements aimed at addressing transitional challenges and ensuring compliance.

Temporary measure

Traders, including GUTA members, will charge and account for VAT at an effective rate of 20% — which includes VAT, the National Health Insurance Levy (NHIL), and the GETFund Levy — until the end of the first quarter of implementation.

This temporary measure is intended to ease the rollout of the reformed system while allowing GUTA to submit feedback on concerns raised during the meeting.

Subsequently, a joint technical team, comprising representatives from both GRA and GUTA, will be formed to tackle sector-specific issues, including VAT record-keeping requirements, input VAT claims, and calculation methods. The team is expected to develop recommendations for further review according to the release.

Education and sensitisation

Both organisations are also committed to intensifying nationwide education and sensitisation programmes to guide traders through the changes and promote compliance with the new regime.

The GRA assured former flat rate scheme operators of its full support and a collaborative approach to minimise disruptions. 

In response, GUTA urged its members to adhere to the new law.

The two bodies reaffirmed their dedication to continued dialogue in the interest of traders, consumers, and national development.

Vision and capacity building

Meanwhile, the President of the Ghana Union of Traders Association (GUTA), Mr Clement Boateng, has described the role as demanding but critical, given traders' central place in Ghana’s economy.

In an exclusive interview with Graphic Business, Mr Boateng stressed the need for hard work to maintain the position and ensure the trading community supports strong consumer purchasing power.

“Keeping that position is not a joke at all. It calls for very hard work. The job is very demanding because, as you know, the trading community is the lifeblood of the economy of the country,” he said.

He added: “When you choose to be a leader of the business community, the onus lies on you to make sure that things are put in the right perspective so that the Ghanaian consumer can also have strong purchasing power as far as the purchasing of goods and services is concerned.”

Priorities

Mr Boateng outlined two main priorities for his tenure: building members’ capacity to adapt to modern, digital business practices and deepening engagement with government agencies.

A key focus will be transitioning traders from traditional methods to more sophisticated approaches. To achieve this, he plans to partner tertiary institutions to deliver targeted training.

“My immediate assignment is to engage the services of some tertiary institutions to organise courses for us so that we will build our capacity and embrace modern ways of doing business,” he explained.

He clarified that the initiative will involve short-term courses rather than full-time schooling. “It is not a matter of going to school. It is about organising short-term courses. There could be arrangements where sessions are held once or twice a week. They will come to our office,” he said.

Dialogue

Mr Boateng also wants to strengthen dialogue with government bodies on taxes, trade policies and regulatory issues. GUTA regularly interacts with agencies such as the Ghana Revenue Authority, the Ministry of Trade and Industry, the Energy Commission and the Ghana Investment Promotion Centre.

“My interest is to deepen engagement with these stakeholders so that whatever challenges we have as far as trading is concerned can be addressed,” he stated.

Since taking over from Dr Joseph Obeng, Mr Boateng has moved quickly to articulate a vision that equips GUTA members for Ghana’s evolving business landscape, while advocating more effectively with policymakers.