The Ghana Revenue Authority (GRA) has provided an update on the ongoing implementation of the Electronic Value Added Tax (E-VAT) system, confirming that the rollout is proceeding as planned.
Addressing recent concerns regarding the status of the E-VAT initiative, the GRA reaffirmed its dedication to swiftly and comprehensively implementing the system. The E-VAT system aims to improve revenue collection, combat tax evasion, and enhance transparency in tax administration.
According to a press release issued by the GRA on May 8, 2024, a successful E-VAT pilot involving 50 taxpayers has been concluded. The pilot phase paved the way for a smooth and successful implementation of E-VAT, prioritizing minimal disruption to taxpayers’ operations.
During the pilot phase, VAT revenue increased by over 58%, resulting in additional contributions exceeding GH¢384 million. The efficiency of electronic VAT invoicing contributed GH¢124 million to this increase, representing 32% of the total revenue boost.
The rollout of the E-VAT system is progressing in phases, with the pilot phase successfully completed. The ongoing initial rollout phase focuses on onboarding large taxpayers, who contribute 80% of VAT collections. The revised timeframe for Phase 1 spans from April 22 to May 31, 2024.
Initial results from Phase 1 onboarding are highly promising, with a 175% progress rate achieved compared to weekly onboarding targets.
The second phase, slated for completion by the end of December 2024, will target the onboarding of medium and small taxpayers.
The final implementation phase will integrate all other VAT-registered taxpayers into the E-VAT system.
The GRA expressed confidence in the significant positive impact of the E-VAT system on VAT contributions and assured stakeholders of its unwavering commitment to its comprehensive and rapid implementation.
The authority acknowledged the cooperation and partnership of all stakeholders in the E-VAT implementation process. Taxpayers seeking further information or assistance regarding the E-VAT system are encouraged to contact their nearest GRA office or visit the authority’s website.
Deployed in accordance with the amended Value Added Tax Act 870, the E-VAT system certifies every taxpayer-issued invoice in near-real-time for revenue assurance purposes.