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E-VAT: Ghana Moves Closer to a Modernized Tax System

According to GRA, the test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritized minimal disruption to taxpayers’ back-office processes.

The Ghana Revenue Authority (GRA) has issued an update on the Electronic Value Added Tax (E-VAT) system implementation, confirming that the rollout is on track and proceeding as planned.

In response to a recent publication raising questions about the status of the E-VAT initiative, the GRA has reaffirmed its dedication to swiftly and thoroughly implementing the system. The E-VAT system aims to boost revenue collection, curb tax evasion, and foster transparency in tax administration, and the GRA remains committed to achieving these goals.

According to a press release issued by the GRA on May 8 2024, a highly successful E-VAT pilot has been completed with 50 taxpayers.

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According to GRA, the test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritized minimal disruption to taxpayers’ back-office processes.

“The test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritized minimal disruption to taxpayers’ back-office processes.  During the Pilot Phase, VAT revenue grew by over 58%, representing additional contributions in excess of GHs 384 million,” the statement said.

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The statement further said the E-VAT system’s rollout is being conducted in phases, with the Pilot Phase having been successfully completed.

“The initial rollout phase which is currently ongoing, is focused on onboarding large taxpayers who account for 80% of VAT contributions. The revised timeframe for Phase 1 is 22 April 2024 to 31 May 2024. Initial results from Phase 1 onboarding are reported as highly encouraging, with a 175% progress rate so far, as measured against weekly onboarding targets,” it said.

The GRA also expressed its confidence about the significant positive impact that the E-VAT will have on VAT contributions, saying the second phase is scheduled to target the onboarding of medium and small taxpayers by the end of December 2024.

They also took the opportunity to assure all stakeholders of their steadfast commitment to the comprehensive and rapid implementation of the E-VAT system.

The GRA expressed its appreciation for the cooperation and partnership of all stakeholders in the E-VAT implementation process.

“Taxpayers seeking further inquiries or assistance regarding the E-VAT system are encouraged to contact their nearest GRA office or visit the authority’s website,” the statement said.

The E-VAT system, deployed by the GRA, in accordance with the amended Value Added Tax Act 870, certifies every invoice issued by taxpayers in near-real-time for revenue assurance purposes.

Read the full statement below:

Media Release E VAT Implementation

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