The Ghana Revenue Authority (GRA) compliance and enforcement unit has taken stringent action against businesses failing to issue Value Added Tax (VAT) invoices, arresting one shop owner and summoning an iron rod company for non-compliance.
The GRA emphasizes the legal requirement for suppliers of taxable items to issue VAT invoices, and customers are obliged to obtain these invoices for purchased goods.
The crackdown followed a test-purchase operation by the GRA, leading to the closure of three branches of Ofori Mati Enterprise and K Tengkorang in the Ledzokuku-Krowor Municipal District in the Greater Accra Region.
Mr. John Yaw Boabeng, Head of Enforcement and Debt Management, Accra South, GRA, highlighted the significance of adhering to VAT invoicing rules, citing revenue leakage as a critical concern affecting government revenues.
Non-compliance, he stressed, is an offense punishable under sections 78 and 82 of the Revenue Administration Act, 2016 (Act 915), focusing on failure to comply with tax laws and impeding tax administration, respectively.
“Penalties would be levied on them, and [they are] tasked to comply by installing their cash till machine for full compliance,” Mr. Boabeng added. Shop managers summoned to the GRA Head Office would face fines after auditing their sales.
Mr. Boabeng underlined the importance of compliance, stating, “Such practices are unfair against other companies; therefore, the GRA must ensure the required compliance is met.”
He urged the public to issue VAT invoices and renew their registrations, emphasizing that compliance would prevent shop closures that affect businesses.
The GRA's crackdown aims to address low revenue income in Ghana compared to other countries, emphasizing the collective responsibility of individuals and businesses to issue VAT invoices for improved fiscal performance.