Demand VAT invoice for purchases - GRA urges consumers

The Ghana Revenue Authority (GRA) has urged consumers to demand Value Added Tax (VAT) invoices for purchases they make to compel businesses to properly account to the government.

“If you buy any goods or services, you must demand the VAT invoice. When you insist on the invoice, the person collecting the money is compelled to account for it. If you do not insist, the person may collect the VAT and keep the money,” the authority said.

The Chief Revenue Officer, Domestic Tax Revenue Division (DTRD) of GRA, Victor Akogo, explained that VAT was a consumption tax charged on goods and services.

It is made up of 15 per cent VAT, 2.5 per cent National Health Insurance Levy, and 2.5 per cent GETFund levy.

He said taxes collected by the authority were used to finance essential services such as schools, hospitals, roads, security services, among others.

Mr Akogo was speaking at a tax education programme organised by the GRA for the Muslim business community in Accra, yesterday.

It was under the auspices of the National Chief Imam on the theme: “Enhancing tax education from the Islamic perspective.”

Mr Akogo further said that taxes such as customs duties and VAT collection were crucial in strengthening domestic revenue mobilisation, and reducing the country’s dependence on external financial support.

He said businesses with an annual turnover of GH¢750,000 and above were required to register for VAT, charge it and account for it to the state.

“If you fail to register and charge VAT, the law will still assume that VAT was included in your sales and the GRA will recover it from you,” the officer said.

Rental tax

Mr Akogo said landlords earning rental income were required to pay tax on such income, with residential rent attracting an eight per cent withholding tax, while commercial property attracted 15 per cent.

He urged tenants not to fear landlords when complying with withholding tax regulations, saying the law clearly provided for the deductions.

Touching on tax filing procedures, Mr Akogo said taxpayers could file returns and make payments online through the GRA taxpayers’ portal without visiting GRA offices.

He appealed to the Muslim business community to champion tax education, adding that religious teachings in some passages in both the Quran and the Bible supported the principle of giving what was due to authority.

The Deputy Commissioner in charge of Communications and Public Affairs of GRA, Florence Asante, said the authority had since 2024, placed emphasis on direct community engagements to ensure that practical tax information reached people at the grassroots.

She said informed citizens were more likely to fulfil their tax responsibilities and contribute to national development.

A customs officer with the Customs Technical Services Bureau of GRA, Mashud Tsale-Tsass, also entreated businesses and individuals to familiarise themselves with the regulatory body responsible for items they intended importing or exporting before doing so.

He urged the public to visit the authority’s public platform, www.external.unipassghana.com, which provided duty estimates for various items to make it easier to plan imports.

Appeal

The Ankobeahene of Asante Apaah, Nana Yiadom Boakye Kanto, appealed to the authority to consider simplifying the tax regime and also review some port charges to ease pressure on businesses and consumers.

A member of the Ahmadiyya Muslim Mission, Maulvi Hafif Ibrahim Sandow, supported the call to muslim business communities to pay their taxes as part of their contributions to the development of the country.