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February 4, 2022
Ghana Revenue Authority issues administrative guidelines on certain provisions of the VAT Amendment Act
The Commissioner-General (CG) of the Ghana Revenue Authority (GRA), the officer responsible for the administration of the tax laws, has issued administrative guidelines on the application and administration of the Value Added Tax (VAT) (Amendment) Act, 2021, Act 1072, which was enacted pursuant to the tax measures introduced by the Government in the 2022 Budget Statement and Economic Policy (the 2022 Budget) to raise revenue to support the financial sector reforms and for other matters. For background on the 2022 Budget, see EY Global Tax Alert, Ghana issues Budget Statement and Economic Policy for 2022 Financial Year, dated 19 November 2021.
This Alert highlights the key issues set forth in the guidelines.
Pursuant to the CG’s powers to issue directives for the implementation of tax laws under the Revenue Administration Act, 2016, Act 915 (as amended), the CG has issued administrative guidelines for the implementation of the VAT flat rate scheme.
These administrative guidelines were issued on 28 January 2022.
The administrative guidelines address:
Implementation of the VAT flat rate scheme
Some features of the VFRS
Taxpayers who meet the threshold and are therefore operating the VFRS under the Act are required to issue a simplified CG’s Tax Invoice.
Registration of the VFRS traders
The category of retailers who qualify to be registered to operate the VFRS include:
Application for registration
Guidelines for taxpayers migrated from the VFRS to the SRS
Transitional arrangements on recovery of input VAT on stocks by affected taxpayers migrated to the SRS
Other transitional arrangements
VAT return form
For additional information with respect to this alert, please contact the following:
Ernst & Young Chartered Accountants, Accra
Ernst & Young Société d’Avocats, Pan African Tax – Transfer Pricing Desk, Paris
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London
Ernst & Young LLP (United States), Pan African Tax Desk, New York