GRA warns financial institutions to halt charging VAT on financial services

Berlinda Entsie 11:22 - 20 April 2017

___6555783___https:______static.pulse.com.gh___webservice___escenic___binary___6555783___2017___4___20___13___GRA-Commissioner

The GRA says financial institutions must refrains from taking VAT on financial transactions made by clients.

The Ghana Revenue Authority is cautioning financial institutions to immediately desist from charging VAT on financial services.

This development follows government announcing some tax reliefs including abolishing of VAT on financial services.

The finance minister Ken- Ofori Atta made these pronouncements during the 2017 budget presentation in Parliament.

A statement signed by Acting Commissioner-General, Emmanuel Kofi Nti said

“Parliament passed the Value Added Tax (Amendment) Act, 2017, Act 948 to include the supply of financial services as exempt supply. In line with the above, we hereby inform all financial institutions to discontinue charging VAT on financial services.”

Find the full letter below.