ACCRA, Ghana – A recent investigation by the Daily Graphic revealed widespread non-compliance with Ghana’s electronic Value Added Tax (e-VAT) invoicing system. The initiative, introduced in October 2022, mandates eligible businesses to integrate their billing systems with a designated Ghana Revenue Authority (GRA) platform for electronic receipt issuance.
Widespread Non-Compliance Denies Government Revenue
Despite the regulation being in effect for over a year and a half, many retailers are yet to comply. This resistance translates into significant revenue losses for the Ghanaian government. The Daily Graphic’s week-long investigation uncovered numerous large and small businesses still issuing traditional paper receipts.
Explanations for non-compliance varied. Some businesses claimed a lack of awareness regarding the e-VAT mandate. Others argued they had exemptions from the GRA, though they could not provide supporting documentation. The investigation also identified businesses that appeared to be deliberately flouting the regulation.
Pilot Program Demonstrated Increased Revenue
The Daily Graphic’s report highlights the potential revenue gains associated with full e-VAT adoption. The pilot phase of the program yielded significantly higher tax collections than anticipated. This suggests that delays in migrating all businesses to the system could cost the government billions of Ghanaian cedis annually.
The e-VAT implementation hiccup comes at a critical time for Ghana’s finances. The government is currently grappling with a budget deficit and needs additional revenue streams. Additionally, meeting revenue targets agreed upon with the International Monetary Fund (IMF) under the Extended Credit Facility (ECF) program is crucial for Ghana’s economic stability.
Source: Graphic Online
