GRA taskforce arrests restaurant managers and staff over VAT invoice

The Ghana Revenue Authority (GRA) task force has apprehended two restaurant managers and the staff of an electrical cable company in Accra for failing to issue VAT tax invoices.

The companies involved are Waves Lounge and Pub, Chez Amis Pub and Grill, and Grand Pacific Limited, which deals in general electrical cables.

After their arrest, the managers were taken to the Customs Office at the GRA headquarters to provide their statements before being transferred to the Criminal Investigation Department of the Police.

According to Mr Edward Appenteng Gyamerah, Commissioner of the Domestic Tax Revenue Division at GRA, the managers had been refusing to issue VAT invoices certified by the Commissioner-General at the point of sale.

This action is part of the GRA's efforts to ensure tax compliance and recover the taxes owed to the state.

Mr Gyamerah emphasized that the Division has various options available for revenue mobilization, including auditing and test purchasing, among others.

During the test purchases conducted on a sample of 115 taxpayers over a week, it was discovered that 93 of them were not issuing VAT invoices.

This non-compliance rate of 80.9% is considered an offence for registered taxpayers who fail to provide VAT invoices for their purchases.

The Division intends to continue enforcement exercises while focusing on the implementation of an electronic invoicing system and other tax types.

Government has set a revenue target of GH¢ 106 billion for the 2023 fiscal year, with the GRA responsible for collecting 70% of the total revenue.

President Nana Akufo-Addo recently assented to three amendments passed by Parliament, including the Excise Duty (Amendment) Act 2023 (Act 1093), the Income Tax (Amendment) Act 2023 (Act 1094), and the Growth and Sustainability Levy Act 2023 (Act 1095).

These amendments aim to support the GRA in meeting its revenue target.

Mr Joseph Annan, Area Enforcement Manager of GRA overseeing Accra Central, stated that surprise exercises would continue nationwide to apprehend tax evaders.

He urged the public, especially customers making taxable purchases, to always request and insist on receiving their VAT invoices.