VAT closes shop in Okaishie

Accra, Nov. 17, GNA - The VAT Service on Tuesday closed down Quality Shop in Okaishie in the Central Business District of Accra for not registering with the Service.

Mr Dela Helloo, Head of Okaishie VAT Office, told newsmen that the shop, which belongs to Mr and Mrs. Wilson and deals in unisex footwear, had failed to register with VAT even though they were eligible for registration. Mr Helloo said the process started with early notification, both written and verbal, while the shop was given a grace period to register.

"But the shop owner failed to comply after 30 days of receiving the letter," Mr Helloo said.

He said lack of understanding on how the Value Added Tax system operated was deterring most traders from registering with the service. Mr Helloo said most traders had failed to understand that VAT was paid by customers and not charged on their capital or profit margin.