The Ghana Revenue Authority (GRA) has issued a stern warning to importers who are eligible to register for Value Added Tax (VAT) but have failed to do so.
Effective June 6, 2023, these importers will face an additional charge of 12.5% on the customs value of taxable goods they import.
This development comes in light of the implementation of the Upfront Payment Policy, which aims to ensure compliance among importers.
The policy requires importers of commercial quantities of taxable goods valued at ¢200,000 and above to pay upfront at the time of importation.
The GRA has clarified that the Upfront Payment Policy should not be mistaken as a new tax but rather as a measure to encourage mandatory VAT registration and filing of returns.
The objective is to create a fair and equitable administration of VAT.
Importantly, the GRA has stated that importers who make the upfront payment will have the opportunity to reclaim the amount when they register and file their VAT returns in accordance with Act 1082.
To avoid being subjected to the upfront payment, the GRA strongly advises all eligible importers to promptly register for VAT. Importers can make the necessary arrangements by visiting the nearest Taxpayer Service Center.
This initiative by the GRA seeks to ensure compliance with VAT requirements and promote a level playing field for importers, ultimately contributing to the effective administration of taxation in Ghana.