GhanaWeb Feature by Ernestina Serwaa Asante

The Ghana Revenue Authority (GRA) has repeatedly highlighted revenue shortfalls caused by individuals and businesses failing to meet their tax obligations.

This challenge, known as tax non-compliance, undermines the government’s ability to mobilise funds for infrastructure, social services, and national development.

According to the GRA, tax compliance means filing returns and paying taxes accurately and on time, in line with Ghana’s tax laws. Any activity carried out in Ghana, or partly in Ghana, that involves supplying goods or services for value is considered taxable.

In simple terms, every Ghanaian has a responsibility to pay taxes. While the system used to be rigid and inconvenient in the past, the GRA has introduced reforms that make tax payments easier, including digital platforms and mobile money integration.

Failure to file returns, report earnings, calculate taxes correctly, or pay on time constitutes non-compliance.

This is an offence under Ghanaian law and can attract fines, penalties, or even prosecution.

One of the biggest challenges is Ghana’s large informal sector, where many businesses and individuals operate outside the tax net. To address this, the GRA is expanding its systems, strengthening enforcement, and broadening the tax base.

Practical Steps to Tax Compliance

1. Register Your Business

Businesses must first register with the GRA and obtain a Tax Identification Number (TIN). Registration ensures accountability and allows businesses to operate legally.

2. File Your Returns on Time

Returns may be filed monthly, quarterly, or annually, depending on the type of business. Filing can now be done digitally via the GRA’s online portal or through traditional means.

3. Keep Proper Records

Accurate record-keeping is essential as many businesses collect taxes but fail to remit them. Customers also often neglect to demand VAT invoices or receipts. Proper documentation ensures transparency and compliance.

4. Be Ready for Audit

VAT compliance remains a major issue, with Ghana facing a 60% VAT gap, meaning only 40% of potential VAT revenue is collected. Businesses must be prepared for audits to ensure they are charging and remitting VAT correctly.

New Measures by GRA

E-invoicing system: Manual invoices are being phased out in favour of digital invoicing, which reduces fraud and improves tracking.

Mobile money integration: Taxpayers can now pay taxes conveniently via mobile money.

Digital transaction monitoring: Plans are underway to track cryptocurrency and other digital transactions to prevent tax evasion.

Broader enforcement: The GRA is strengthening tax enforcement and expanding the tax net to capture more businesses in the informal sector.

Why Compliance Matters

Tax compliance is not just a legal obligation; it is a civic duty. Taxes fund roads, schools, hospitals, and other essential services. By paying taxes, individuals and businesses contribute to national development and help build the Ghana they want to see.

Insights were drawn from a speech by the Acting Commissioner of the Domestic Tax Revenue Division at the Ghana Revenue Authority, Dr Martin Kobil Yamborigya, at the Mövenpick Accra Business Forum.