Home Business E-VAT rollout on track, set to boost revenue collection

E-VAT rollout on track, set to boost revenue collection

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By Joshua Worlasi AMLANU

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.

In response to 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.

The E-VAT system’s rollout is being conducted in phases, with the Pilot Phase having been successfully completed. Phase 1, currently underway, aims to onboard 600 taxpayers by the end of May 2024, while Phase 2 targets the integration of 2,000 taxpayers by the end of December 2024. Phase 3 will subsequently focus on integrating all remaining VAT-registered taxpayers by the end of 2026.

According to the GRA, the initial results from the ongoing Phase 1 onboarding have been highly encouraging. Since the commencement of Phase 1 on April 22, 2024, with a target of onboarding 120 taxpayers per week, a total of 210 taxpayers have been successfully integrated into the E-VAT system, representing a 175 percent achievement against the first week’s target.

The authority highlighted the significant gains on the revenue front witnessed during the Pilot Phase, with VAT revenue growing by over 58 percent, 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 percent of this increase.

With a total projected VAT revenue of GH¢ 25.6 billion for 2024, the GRA anticipates a contribution of GH¢ 16.6 billion from Pilot and Phase 1 taxpayers (650 taxpayers). With an E-VAT efficiency rate of 27 percent, these taxpayers are expected to contribute a marginal increment of GH¢ 4.6 billion to VAT contributions.

The GRA expressed its appreciation for the cooperation and partnership of all stakeholders in the E-VAT implementation process. Taxpayers seeking further inquiries or assistance regarding the E-VAT system are encouraged to contact their nearest GRA office or visit the authority’s website.

The E-VAT system, deployed by the GRA on October 1, 2022, in accordance with the amended Value Added Tax Act 870, certifies every invoice issued by taxpayers in near-real-time for revenue assurance purposes.

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