The Ghana Revenue Authority (GRA) has announced that the successful piloting of its Electronic Value Added Tax (e-VAT) system has increased income by 58%.
The recently concluded pilot increased VAT income by GH¢384 million, with computerized VAT invoicing efficiency accounting for GH¢124 million.
The authority stated that it was dedicated to speedy deployment in order to maximize the benefits of the e-VAT system in terms of revenue collection, combating tax evasion, and promoting tax administration transparency.
The GRA noted that the e-VAT system was being introduced in stages, beginning with a successful pilot period to guarantee a seamless rollout and improved tax collection.
Phase one completed
According to the GRA’s Communication and Public Affairs Department, the pilot phase of e-VAT invoicing efficiency resulted in a revenue gain of GH¢124 million, or 32%.
The GRA credited the pilot phase’s success to the flawless introduction of the e-VAT system, which prioritized minimizing disturbance to taxpayers’ back-office procedures.
Timelines
The first phase, which began on April 22 this year and will expire on May 31, 2024, concentrates on enrolling large taxpayers, who account for 80% of VAT contributions.
The GRA stated that it has achieved a 175% progress rate, exceeding weekly onboarding objectives. It stated that phase two would be completed by December of this year and would onboard medium and small taxpayers, while phase three would integrate all other VAT registered taxpayers into the e-VAT system.
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The GRA’s e-VAT system intends to improve revenue collection, prevent tax evasion, and increase transparency in tax administration, building on the success of the pilot phase.
The GRA expressed confidence in the e-VAT system’s major beneficial impact and promised stakeholders that it would be implemented quickly. The authority expressed confidence that the complete implementation of the system will have a favorable impact on VAT contributions.
The GRA expressed satisfaction with the findings and pledged to maximise the benefits of the e-VAT system. The authority praised taxpayers for their cooperation throughout the pilot period and asked them to maintain their support for the system’s deployment.
