The Ghana Revenue Authority (GRA) has issued a stern warning to importers who meet the criteria for Value Added Tax (VAT) registration but have failed to do so. Effective from June 6, 2023, these importers will face an additional charge of 12.5% on the customs value of taxable goods they import.
This development comes as a result of the implementation of the Upfront Payment Policy by the GRA.
The Upfront Payment Policy applies to the importation of taxable goods in commercial quantities with a value of ¢200,000 and above. It is important to note that this policy is not a new tax; rather, it serves as a compliance tool to encourage those individuals and entities required to register for VAT to fulfill their obligations by registering and filing returns. The aim is to achieve fairness and uniformity in the administration of VAT.
The GRA emphasizes that importers who opt for the upfront payment may be eligible to recover the amount when they subsequently register and file their VAT returns, as stipulated in Act 1082. This provision allows for the reimbursement of the upfront payment, ensuring that importers are not burdened with unnecessary costs in the long run.
In light of this development, the GRA urges all importers who meet the requirements for VAT registration to take the necessary steps to register at their nearest Taxpayer Service Center. By doing so, they can avoid the upfront payment and ensure compliance with VAT regulations. The GRA recognizes the importance of a robust VAT system in generating revenue for the government and providing essential public services. By encouraging timely registration and filing of returns, the authority aims to create a level playing field for all taxpayers and promote accountability within the business community.
It is crucial for importers to understand their obligations under the Value Added Tax (VAT) regime and to comply with the Upfront Payment Policy to avoid penalties and unnecessary financial burdens. The GRA remains committed to providing assistance and guidance to taxpayers, and the Taxpayer Service Centers are available to support importers in the registration process.
In conclusion, the implementation of the Upfront Payment Policy by the GRA underscores the importance of VAT compliance among importers. By registering for VAT and fulfilling their obligations, importers contribute to the effective administration of VAT and the overall economic development of Ghana. Importers are strongly advised to register for VAT at the earliest opportunity and seek guidance from the GRA to ensure smooth operations and compliance with tax regulations.
Source-Myjoyonline.com
