Home News E-VAT Not In Limbo, Revenue Increased By 32%– GRA | Business News

E-VAT Not In Limbo, Revenue Increased By 32%– GRA | Business News

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The Ghana Revenue Authority (GRA) has refuted claims that piloting its electronic Value Added Tax (e-VAT) invoicing system has led to the state losing billions in revenue.

According to the Authority, the system’s piloting has rather led to a 32 percent increase in revenue.

This follows report making rounds that the system’s flop made the rounds on Wednesday, May 8, but a statement issued by the Communications and Public Affairs Department of the authority described the rumours as erroneous.

GRA said the pilot phase, which has been completed with 50 taxpayers, has been highly successful and impacted its revenue by GH¢124 million.

The GRA continues that the e-VAT system is currently being piloted and will soon integrate all VAT-registered taxpayers “to enhance revenue collection, combat tax evasion, and help promote transparency in tax administration, as demonstrated by the Pilot Phase.”

Read the full statement:

Update on Progress of E-VAT Implementation

The attention of the Ghana Revenue Authority (GRA) has been drawn to a publication in the Daily Graphic of Wednesday, 8 May 2024, titled “E-VAT in limbo: Retail outlets suck economy dry – Nation loses billions in revenue”.

2. The GRA takes this opportunity to provide clarity on its implementation of the EVAT system. Notably:

i) The rollout of the E-VAT system is being conducted using a phased approach.

ii) The Pilot Phase: A highly successful pilot has been completed with 50 taxpayers. The test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritized minimal disruption to taxpayers’ back-office processes. During the Pilot Phase, VAT revenue grew by over 58%, representing additional contributions in excess of GH¢384 million. Electronic VAT invoicing efficiency contributed to a revenue impact of GH¢124 million, accounting for 32% of this increase.

iii) Phase 1: The initial rollout phase which is currently ongoing, is focused on onboarding large taxpayers who account for 80% of VAT contributions. The revised timeline for Phase 1 is from 22 April, 2024 to 31 May, 2024. Initial results from Phase 1 onboarding have been highly encouraging, with a 175% progress rate so far, as measured against weekly onboarding targets.

iv) Phase 2: The second phase targets the onboarding of medium and small taxpayers by the end of December 2024.

v) Phase 3: The final implementation phase targets the integration of all other VAT registered taxpayers into the E-VAT system.

3. The GRA is confident of the significant positive impact that the E-VAT will have on VAT contributions and takes this opportunity to assure all stakeholders of its steadfast commitment to the comprehensive and rapid implementation of the E-VAT system. The successful rollout of E-VAT is poised to enhance revenue collection, combat tax evasion, and help promote transparency in tax administration, as demonstrated by the Pilot Phase.

4. The GRA takes this opportunity to thank all our clients for their cooperation and partnership as we continue to onboard them onto the E-VAT system.

5. For further inquiries or assistance regarding E-VAT implementation, taxpayers are encouraged to contact their nearest GRA office or visit our website.

Source: dailyguidenetwork.com

 

 



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