GRA deploys officers to monitor VAT compliance among businesses

The Ghana Revenue Authority (GRA) has begun a Value Added Tax (VAT) invigilation exercise aimed at addressing declining taxpayer compliance, including failures to register, file and pay taxes, as well as the under-reporting of income.

The exercise involves trained GRA officers being stationed at business premises to observe transactions and assess compliance with VAT requirements, Acting Deputy Commissioner in charge of Strategy and Research Policy and Acting Head of VAT Administration, Dr. Dominic Naab, has said.

Speaking in an interview, Dr. Naab explained that the officers would record transactions and, in some cases, conduct test purchases to determine whether businesses were issuing valid VAT invoices to customers.

He said information gathered during the exercise would be compared with tax returns submitted by businesses at the end of each month to identify discrepancies that might require further explanation.

“Over time, we have realised that there has been a decline in registration, filing and payment, and even in some cases, under-reporting,” Dr. Naab said.

He explained that the VAT invigilation exercise was introduced in response to the trend, adding that the officers had been professionally trained to carry out their duties without harassing or disrupting businesses.

“They don’t harass; they don’t disrupt. They just sit or stand at a vantage point and engage customers as they come in and go out,” he said.

According to Dr. Naab, officers may ask customers whether they received VAT invoices for their purchases. Where businesses fail to issue the required invoices, the officers will record the transactions for comparison with the businesses’ tax returns.

He also urged consumers to demand VAT invoices whenever they make purchases, noting that VAT is included in advertised prices unless a business clearly indicates otherwise.

Businesses found to be non-compliant could face administrative penalties and interest, while persistent violations could result in prosecution, he said.

Dr. Naab further encouraged members of the public to report businesses that fail to comply with VAT requirements to the GRA, stressing that public participation was important to improving domestic revenue mobilisation.

Source: Sekunde FM