Business owners to face 5-year jail term for issuing fake VAT invoice – GRA

Head of Domestic Tax Revenue Division at the Ghana Revenue Authority, Edward Gyambrah, has noted that businesses that fail to issue certified receipts to customers will be imprisoned for not less than 2 years and not more than 5 years.

This, he said, was in accordance with Section 41 (11) of the VAT law.

The law states that businesses that fail to issue a tax invoice through a certified invoicing system contrary to subsection 2 faces sanctions including conviction to a fine of not less than 1000 penalty units or a term of imprisonment of not less than two years and not more than five years or both, among others.

Edward Gyambrah, further highlighted that it is criminal for businesses to not issue VAT invoices to customers after the purchase of goods and services.

He cautioned registered businesses to not evade taxes and issue receipts after transacting businesses with customers.

In an interview with the media, Edward Gyambrah said, “Under no circumstance should any business ask do you need VAT invoice or normal invoice that question, amounts to suppression of tax; an action which is criminal under the Revenue Administration Act. We have started prosecuting people and they could face some prison terms”.

“We are cautioning all registered businesses dealing with customers to be transparent and not evade taxes. You are supposed to issue VAT invoices to customers, don’t be asking whether they need a receipt or not because that is criminal,” he stressed.

The Head of Domestic Tax Revenue Division stated that effective October this year, GRA will start the automation of some VAT invoices.

This is to monitor businesses, as well as, fast track their processes of issuing receipts.

The exercise forms part of measures put in place by the GRA to generate more revenue for the country.

ESA/FNOQ