E-VAT to positively impact revenue collections

The Ghana Revenue Authority (GRA) has expressed optimism about the e-VAT system’s potential to boost tax revenue collection and transparency follow­ing a successful pilot and commencement of phase 1 onboarding.

According to a press release issued by the GRA on May 8, 2024, the e-VAT system, which allows for electronic invoicing, has exceeded expectations in its early stages.

“The test and pilot phase provided a pathway for successful and seamless e-VAT implementation, which prioritised minimal disruption to taxpayers’ back office processes,” the GRA statement said.

The initial pilot phase, involving 50 taxpayers, proved highly successful with VAT revenue report­ed to have increased by a staggering 58 per cent, with electronic invoicing directly contributing over GH¢124 million of the increase. This, the statement said, showcased the e-VAT sys­tem’s efficiency in capturing tax revenue.

It says Phase 1 focus­es on onboarding large taxpayers who contribute a significant portion (80%) of VAT collections. The revised timeline for Phase 1 extends from April 22 to May 31, 2024, with initial results exceeding expecta­tions after the Authority recorded a remarkable 175 per cent progress rate compared to its weekly onboarding targets.

Phase 2, planned for completion by Decem­ber 2024, targets medi­um and small taxpayers, while Phase 3 will see the inclusion of all remaining VAT-registered taxpayers into the e-VAT system.

The statement expressed confidence that the e-VAT system will significantly and positively impact VAT collections.

“The E-VAT system is expected to enhance revenue generation, combat tax evasion, and promote greater transparency within the tax administration pro­cess as demonstrated by the success of the pilot phase,” said the statement.

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