GRA clarifies that E-VAT raised income by 32%.

Rumors that the state lost billions of dollars in revenue as a result of testing its electronic Value Added Tax (e-VAT) invoicing system have been refuted by the Ghana Revenue Authority (GRA).

GRA emphasized that instead, a 32% increase in revenue had resulted from the system’s piloting.

On Wednesday, May 8, speculations of the system’s failure circulated, but the authority’s Communications and Public Affairs Department refuted the rumors in a statement.

GRA reported that the trial program, which involved 50 taxpayers and was completed, was extremely successful and increased its revenue by GH¢124 million.

The GRA also stated that all VAT-registered taxpayers will soon be integrated into the e-VAT system, which is presently in the trial program. This is being done “to enhance revenue collection, combat tax evasion, and help promote transparency in tax administration, as demonstrated by the Pilot Phase.”

The entire statement is given below.

A Progress Report on the Implementation of E-VAT

The article “E-VAT in limbo: Retail outlets suck economy dry – Nation loses billions in revenue” which appeared in the Daily Graphic on Wednesday, May 8, 2024, has caught the attention of the Ghana Income Authority (GRA).

2. The GRA uses this chance to explain how the EVAT system is being implemented. Especially:

i) A staged strategy is being used to bring out the E-VAT system.

ii) The Pilot Phase: With 50 taxpayers, a very successful pilot has been finished. The goal of the test and pilot phase was to minimize disturbance to taxpayers’ back-office operations while paving the way for an easy and successful rollout of E-VAT. VAT revenue increased by more than 58% during the Pilot Phase, amounting to additional contributions above GH¢384 million. 32% of this gain in revenue was accounted for by the efficiency of electronic VAT invoicing, which generated GH¢124 million in revenue.

iii) Phase 1: Large taxpayers, who contribute 80% of all VAT, are the main target of the first rollout phase, which is presently in progress. Phase 1’s new schedule now runs from April 22, 2024, to May 31, 2024.

As compared to weekly onboarding targets, Phase 1 onboarding has shown very positive first results, with a 175% progress rate.

iv) Phase 2: By the end of December 2024, medium and small taxpayers are to be onboarded as part of this phase.

v) Phase 3: The integration of all additional VAT-registered taxpayers into the E-VAT system is the goal of this last implementation phase.

3. The GRA takes this opportunity to reassure all stakeholders of its unwavering commitment to the thorough and expeditious deployment of the E-VAT system. The GRA is confident in the significant beneficial impact that the E-VAT will have on VAT contributions.

As the Pilot Phase has shown, the successful implementation of the E-VAT is expected to improve revenue collection, combat tax evasion, and aid in promoting transparency in tax administration.

4. As we continue to integrate clients into the E-VAT system, the GRA would like to take this opportunity to thank each one of them for their cooperation and partnership.

5. Taxpayers are urged to visit our website or get in touch with their local GRA office if they have any more questions or need help with the implementation of E-VAT.