The Ghana Revenue Authority enforces the E-VAT system and fiscal receipt and invoice issuance compliance

The Ghana Revenue Authority (GRA) has stepped up its efforts to ensure compliance with the Value Added Tax (VAT) law by conducting operations to check the issuance of fiscal receipts and invoices by companies. The GRA's compliance and enforcement unit said that the non-issuance of fiscal receipts and invoices is a criminal offense and can lead to prosecution under sections 78 and 82 of the Revenue Administration Act, 2016 (Act 915). The GRA expects all suppliers of taxable items, goods, or services to issue fiscal receipts and invoices as required by law, and in the same vein, the customer is required by law to obtain fiscal receipts and invoices from business owners for goods purchased.

The Area Enforcement Manager of GRA stated that every registered VAT taxpayer who joined the E-VAT system is required to issue an electronic fiscal receipt and invoice with details prescribed by the Commissioner-General when they provided services or supplied goods.

The main offenses, in short, are:

• Non-issuance of fiscal receipts and invoices by suppliers of taxable items, goods, or services
• Issuance of owning a different VAT instead of the Commissioner-General’s fiscal receipt and invoice
• Selective issuance of fiscal receipts and invoices
• Impeding tax administration by failing to comply with the E-VAT system and the issuance of fiscal receipts and invoices

From GRA, it was stated that the punishment for such infractions as provided under the VAT Act included a fine of not more than one hundred penalty units, a term of imprisonment of not more than six months, or both, in addition to a payment of penalty in the amount of not more than GHC 50,000, or three times the amount of tax involved, which can be considered high penalties for non-compliance. Based on the current information, the operations of control would continue until the whole tax payment was automated on a system to enforce mandatory payments and VAT compliance.

The GRA is making significant strides in modernizing its tax system with the implementation of the second phase of the E-VAT system. Set to begin no later than December 2023, this phase aims to streamline tax processes and enhance revenue collection further in the country. The E-VAT system is part of the government's efforts to increase revenue mobilization and reduce tax evasion.

The GRA has urged all taxpayers to comply with the E-VAT system and the issuance of fiscal receipts and invoices as required by law. The GRA has also assured taxpayers that it will provide adequate support and guidance for the smooth implementation of the system in this process.