E-VAT rollout on track, set to boost revenue collection, says GRA
According to a press release issued by the GRA on 8 May 2024, a highly successful E-VAT pilot with 50 taxpayers has been completed
The Ghana Revenue Authority (GRA) has given an update on the implementation of the Electronic Value Added Tax (E-VAT) system, and says that the rollout is progressing according to schedule.
Following a recent publication questioning the status of the E-VAT initiative, the GRA has affirmed its commitment to the comprehensive and rapid implementation of the system, which is expected to enhance revenue collection, combat tax evasion and promote transparency in tax administration.
According to a press release issued by the GRA on 8 May 2024, a highly successful E-VAT pilot has been completed with 50 taxpayers. The test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritised minimal disruption to taxpayers’ back-office processes.
During the pilot phase, VAT revenue grew by over 58%, representing additional contributions of over GHC384 million. Electronic VAT invoicing efficiency contributed to a revenue impact of GHC124 million, accounting for 32% of this GHC384 million increase.
The rollout of the E-VAT system is being conducted in phases.
The initial rollout phase, which is ongoing, is focused on onboarding large taxpayers, which account for 80% of VAT contributions. The revised timeframe for phase one is 22 April 2024 to 31 May 2024. Initial results from phase one onboarding are reported as highly encouraging, with a 175% progress rate so far as measured against weekly onboarding targets.
The second phase is scheduled to target the onboarding of medium and small taxpayers by the end of December 2024. The final implementation phase will target the integration of all other VAT-registered taxpayers into the E-VAT system.
“Rapid implementation”
The GRA also expressed its confidence about the significant positive impact that E-VAT will have on VAT contributions and took the opportunity to assure all stakeholders of its commitment to the comprehensive and rapid implementation of the new VAT system.
The Authority expressed its appreciation for the co-operation and partnership of all stakeholders in the E-VAT implementation process.
Taxpayers seeking further information or assistance regarding the E-VAT system are encouraged to contact their nearest GRA office or visit the authority’s website.
The E-VAT system, deployed by the GRA following the amended Value Added Tax Act 2023 (Act 870), certifies every invoice issued by taxpayers in near-real time for revenue assurance purposes.
Reporting by Wilberforce Asare in Accra
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