VAT service imposes over ?4 billion penalty on defaulting companies

Accra (Greater Accra), 29th April ?99 ?

 The VAT service has issued notices imposing a penalty of one million cedis on each VAT-registered business which failed to submit the February returns by March 31.

A release issued in Accra on Wednesday said in all, penalty notices have been issued to 4,294 businesses.

The VAT Act 1998 (Act 546) obliges every VAT-registered business to file a VAT return on a prescribed form by the last working day of the month following the one in respect of which the return is being submitted.

It also imposes penalties for failure to submit returns by the due date.

The release said as part of the implementation strategy of affording businesses ample opportunity for learning to come to grips with the compliance requirements of the VAT law, the VAT Service did not activate the penalties for late submission of returns in respect of January.

It, however, warned that failure to submit March returns would attract the one million cedis penalty in addition to a daily penalty of 5,000 cedis for each day that the non-submission of returns continues beyond the due date.

"Beyond the due date for submission of April returns, interest on outstanding tax liabilities will be charged in addition to the two types of pecuniary penalties mentioned."

GRi?/