By Hannah Dadzie
The Ghana Revenue Authority (GRA), has provided an update on the implementation of the Electronic Value Added Tax (E-VAT) system, stating that the rollout is progressing according to schedule.
Following a recent publication questioning the status of the E-VAT initiative, the GRA has affirmed its commitment to the comprehensive and rapid implementation of the system, which is expected to enhance revenue collection, combat tax evasion, and promote transparency in tax administration.
A statement issued by the GRA on May 8, 2024, indicated that a highly successful E-VAT pilot has been completed with 50 taxpayers. According to the statement, the test and pilot phases provided a pathway for successful and seamless E-VAT implementation, which prioritised minimal disruption to taxpayers’ back-office processes.
During the Pilot Phase, VAT revenue grew by over 58%, representing additional contributions in excess of GHs 384 million. Electronic VAT invoicing efficiency contributed to a revenue impact of GHs 124 million, accounting for 32% of this 384 million increase.
The statement said the E-VAT system’s rollout is being conducted in phases, with the Pilot Phase having been successfully completed. It added that the initial rollout phase, which is currently ongoing, is focused on onboarding large taxpayers who account for 80% of VAT contributions. The revised timeframe for Phase One is April 22, 2024, to May 31, 2024. Initial results from Phase One onboarding are reported as highly encouraging, with a 175% progress rate so far, as measured against weekly onboarding targets.
The GRA said the second phase is scheduled to target the onboarding of medium and small taxpayers by the end of December 2024. The final implementation phase will target the integration of all other VAT registered taxpayers into the E-VAT system.
The Authority is confident about the positive impact that the E-VAT will have on VAT contributions. It has therefore assured all stakeholders of its steadfast commitment to the comprehensive and rapid implementation of the E-VAT system.
The GRA expressed its appreciation for the cooperation and partnership of all stakeholders in the E-VAT implementation process. It encouraged taxpayers seeking further inquiries or assistance regarding the E-VAT system to contact their nearest GRA office or visit the authority’s website.
The E-VAT system, deployed by the GRA, in accordance with the amended Value Added Tax Act 870, certifies every invoice issued by taxpayers in near-real-time for revenue assurance purposes.
