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A taxable person who makes a taxable supply of immovable property other than for accommodation in a dwelling or a commercial rental establishment is required to account for the tax at a flat rate of 5% on the value of the taxable supply.
Real estate developers who make a taxable supply of immovable property are also required to account for the tax on the value of the taxable supply at a flat rate of 5%.
Patrick Ebo Bonful, the President of GREDA, stated that the current economic challenges, combined with the five per cent VAT on estate developers, have further worsened the situation for the real estate industry, necessitating an urgent bailout.
"Our industry is going through a tough time, and it is our only wish that we could get some bailout from somewhere, from the government especially, if we could do away with the five per cent VAT that has been imposed on real estate. It is only making the matter more difficult. We humbly plead that they do so and they do so expeditiously," he said.
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Bonful made the call at the opening of the three-day Graphic-GREDA Housing Fair ongoing at the GHUD Park at the Accra Mall.
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GREDA Estate (File Photo)
The fair, which kicked off with a surge of visitors eager to engage with exhibitors, is the largest housing event in the country.
Addressing the opening session, Bonful emphasised the importance of due diligence for property purchasers.
Ghana's housing deficit stands at around 2 million units. This significant shortfall highlights the urgent need for affordable and adequate housing solutions to accommodate the country's growing population and urbanisation.
Efforts to address the housing deficit include both government and private sector initiatives aimed at increasing the supply of affordable housing, improving mortgage accessibility, and upgrading existing informal settlements.
However, overcoming the deficit remains a significant challenge that requires comprehensive and sustained efforts.