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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.

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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.

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