4 months ago
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The Ghana Revenue Authority (GRA) has expressed optimism about the e-VAT system’s potential to boost tax revenue collection and transparency following a successful pilot and commencement of phase 1 onboarding.
According to a press release issued by the GRA on May 8, 2024, the e-VAT system, which allows for electronic invoicing, has exceeded expectations in its early stages.
“The test and pilot phase provided a pathway for successful and seamless e-VAT implementation, which prioritised minimal disruption to taxpayers’ back office processes,” the GRA statement said.
The initial pilot phase, involving 50 taxpayers, proved highly successful with VAT revenue reported to have increased by a staggering 58 per cent, with electronic invoicing directly contributing over GH¢124 million of the increase. This, the statement said, showcased the e-VAT system’s efficiency in capturing tax revenue.
It says Phase 1 focuses on onboarding large taxpayers who contribute a significant portion (80%) of VAT collections. The revised timeline for Phase 1 extends from April 22 to May 31, 2024, with initial results exceeding expectations after the Authority recorded a remarkable 175 per cent progress rate compared to its weekly onboarding targets.
Phase 2, planned for completion by December 2024, targets medium and small taxpayers, while Phase 3 will see the inclusion of all remaining VAT-registered taxpayers into the e-VAT system.
The statement expressed confidence that the e-VAT system will significantly and positively impact VAT collections.
“The E-VAT system is expected to enhance revenue generation, combat tax evasion, and promote greater transparency within the tax administration process as demonstrated by the success of the pilot phase,” said the statement.
