Dealers to collect VAT flat rate

Accra, Oct. 11, GNA - The Ghana Electrical Dealers Association (GEDA) on Thursday affirmed their decision to charge and collect Value Added Tax (VAT) as a matter of national duty as well as their civic responsibility to the country. The decision was taken after series of negotiations with VAT officials which led to the introduction of the VAT flat rate of three per cent by retailers on each taxable item sold. Mr. Joseph Obeng, President of GEDA disclosed this at a meeting with VAT officials in Accra to discuss matters arising from the implementation of the scheme and also find a common ground where traders and buyers could appreciate the need to pay tax. He therefore called for the creation of a level playing field where all shops were registered without exception to avoid the situation where other traders had upper hands in trading due to the fact they did not pay tax.

Mr Obeng noted that the success of the scheme depended much on education and effective monitoring by officials and appealed to members of the group and all traders to take advantage of the scheme and register.

He observed that as a new scheme, some problems might arise in the course of implementation adding, "When they occur, we shall call the attention of the VAT Commissioner to such problems". Mr Obeng said he was prepared to expose any member who failed to register and charge VAT to VAT officials adding, "If you sell, you charge VAT and If you buy, you pay VAT." He encouraged institutions and agencies to purchase from only VAT registered shops to ensure total development. Mr Gabriel Kuntoh, Head, Adabraka Local Office of VAT appreciated the unified spirit among the members to help in the implementation of the scheme.

He said foreign countries were now emulating Ghana due to the successes it had chalked so far since the inception of the scheme. Mr Kuntoh noted that the scheme was one of the effective ways of mobilising funds for development and urged traders to visit VAT offices for clarification on any mind-boggling issues. Mr Dela Heloo, Head, Okashie Sub-Office of the service called for voluntary compliance on the part of every Ghanaian to avoid any encounter with the law.

The VAT Flat Rate Scheme was introduced for traders in the retailing industry (retailers of taxable goods) as the simpler scheme.