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Business News of Tuesday, 31 August 2021


GRA to reject expenses that do not come with VAT invoice from October 1

Rev. Ammishaddai Owusu-Amoah, Commissioner General of the GRA Rev. Ammishaddai Owusu-Amoah, Commissioner General of the GRA

• The GRA has said it will reject companies’ expenses without VAT invoice from October 1

• The move forms parts of a strict tax compliance initiative

• It is also meant to seal possible revenue leakages in the tax system

The Ghana Revenue Authority (GRA) has disclosed that it will reject any expenditure costs made by a business entity without a Value Added Tax (VAT) invoice, from October this year .

The VAT invoice is a document issued by any accountable person to set out the details of a taxable financial activity as prescribed by the VAT law and is applied to goods and services.

But the latest move, the GRA said, is to ensure strict tax compliance with the premise of sealing possible revenue leakages in the tax system.

Commissioner General of the GRA, Rev. Ammishaddai Owusu-Amoah pointed the move is necessary to clamp down on business entities who fail to issue tax invoices to clients.

“We are focusing on data warehousing, data matching, and artificial intelligence to be able to make sure that there’s compliance. Defaulters who in the past were able to dodge, in the future we are sure that we’ll be able to find them. Therefore, enforcement actions are very important for us to ensure that we comply.”

“In fact, from October 1, we have come out with an initiative that says that if you present any expenditure when you’re being audited, and you don’t have a VAT invoice to support that particular expenditure, it does not exist as far as GRA is concerned. So it means that everyone who does their expenditure in line with the VAT regulations must ensure that whatever he/she reports in his books comply with the VAT regulations.”

Rev. Ammishaddai Owusu-Amoah made this known speaking at the launch Revenue Assurance, Compliance and Enforcement (RACE) initiative in Accra last week.