The Ghana Revenue Authority (GRA) has refuted rumors suggesting that the pilot of its electronic Value Added Tax (e-VAT) invoicing system has resulted in the loss of billions in revenue for the state.

The GRA clarified that the piloting of the system has actually resulted in a 32 percent increase in revenue.

Despite reports circulating on Wednesday, May 8, 2024, alleging the failure of the system, a statement from the Communications and Public Affairs Department of the authority dismissed these rumors as inaccurate.

The GRA stated that the completed pilot phase, involving 50 taxpayers, has been remarkably successful, contributing a revenue increase of GH¢124 million.

Furthermore, the GRA emphasized that the ongoing pilot of the e-VAT system will progressively include all VAT-registered taxpayers.

This integration aims to bolster revenue collection, combat tax evasion, and foster transparency in tax administration, mirroring the achievements of the Pilot Phase.

Here is the full statement from the GRA:

Update on Progress of E-VAT Implementation

The attention of the Ghana Revenue Authority (GRA) has been drawn to a publication in the Daily Graphic of Wednesday, 8 May 2024, titled “E-VAT in limbo: Retail outlets suck economy dry – Nation loses billions in revenue”.

  1. The GRA takes this opportunity to provide clarity on its implementation of the EVAT system. Notably:

i) The rollout of the E-VAT system is being conducted using a phased approach.

ii) The Pilot Phase: A highly successful pilot has been completed with 50 taxpayers. The test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritized minimal disruption to taxpayers’ back-office processes. During the Pilot Phase, VAT revenue grew by over 58%, representing additional contributions in excess of GH¢384 million. Electronic VAT invoicing efficiency contributed to a revenue impact of GH¢124 million, accounting for 32% of this increase.

iii) Phase 1: The initial rollout phase which is currently ongoing, is focused on onboarding large taxpayers who account for 80% of VAT contributions. The revised timeline for Phase 1 is from 22 April, 2024 to 31 May, 2024. Initial results from Phase 1 onboarding have been highly encouraging, with a 175% progress rate so far, as measured against weekly onboarding targets.

iv) Phase 2: The second phase targets the onboarding of medium and small taxpayers by the end of December 2024.

v) Phase 3: The final implementation phase targets the integration of all other VAT-registered taxpayers into the E-VAT system.

  1. The GRA is confident of the significant positive impact that the E-VAT will have on VAT contributions and takes this opportunity to assure all stakeholders of its steadfast commitment to the comprehensive and rapid implementation of the E-VAT system. The successful rollout of E-VAT is poised to enhance revenue collection, combat tax evasion, and help promote transparency in tax administration, as demonstrated by the Pilot Phase.
  2. The GRA takes this opportunity to thank all our clients for their cooperation and partnership as we continue to onboard them onto the E-VAT system.
  3. For further inquiries or assistance regarding E-VAT implementation, taxpayers are encouraged to contact their nearest GRA office or visit our website.

Source: Blackgh.com

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