Taxes In Ghana 3% VAT flat rate takes off in July 1

The Ghana Revenue Authority (GRA) explained that the previous 17.5% input-output tax was charged on value added while the new 3% rate is imposed on turnover.

  • Published:
24/7 Live - Subscribe to the Pulse Newsletter!

The application of the 3% VAT Flat Rate replacing the former 17.5% VAT has taken effect from July 1, 2017.

The Ghana Revenue Authority (GRA) explained that the previous 17.5% input-output tax was charged on value added while the new 3% rate is imposed on turnover.

The old system saw few people complying due to the extensive paperwork in filing VAT returns.

READ ALSO: Bill passed to scrap taxes on spare parts

However, the new system is expected to make it easier for taxpayers to comply. The GRA explained

Many have wondered if the new approach will increase the price of businesses. However, the GRA has stated that the new approach will not increase the price of businesses.

To reduce complications in the filing of tax returns, the GRA has started educating stakeholders on the new approach.

READ ALSO: Government to reduce corporate tax to 20 percent in 2018 budget - Minister

However, some business groups have expressed reservations about the new approach.

They have therefore called on the GRA to increase their engagements for better guidance on how to comply with the new approach.

In a related development, the GRA officials have also indicated their readiness to help any stakeholder who walks into their offices for help.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Poverty Gap Ghana’s policies make the rich wealthier – UNbullet
2 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions public...bullet
3 In Upper East 2 men killed in daylight bank robberybullet
4 Menzgold Ghana Investment company closes down its Gold Vault Marketbullet
5 SSNIT Scandal 10 SSNIT staff with fake certificates dismissed –...bullet
6 $72m SSNIT Saga Ernest Thompson, 4 others charged with...bullet
7 Investment Haven Ghana is the best place to do business in...bullet
8 Salaries In 2018 Here are the dates public workers will be...bullet
9 SSNIT Scandal Ernest Thompson denies knowledge of PWC auditbullet
10 Microfinance Finance Institutions BoG to take action...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
3 Bozoma Saint John 10 quotes from Uber top official, Bozoma, that...bullet
4 Money Alert Meet Africa's richest womanbullet
5 Plane Crash Starbow suspends operations following plane crashbullet
6 Support Finance minister buys Kantanka carbullet
7 Tech 6 reasons you should buy an iPhone SE instead of any of...bullet
8 Dr Joseph Siaw Agyepong Nobody can collapse my company –...bullet
9 New Phones Nokia MWC 2018 Event in 5 minutesbullet
10 Entrepreneurship Creating Success Systems | StartUpSchoolbullet

Business