VAT/NHIL increased to 17½ per cent

The Ghana Revenue Authority (GRA) on Thursday reminded business community that the new Value Added Tax (VAT) is 15 per cent, whiles National Health Insurance Levy (NHIL) remains at 2½ per cent.

GRA explained that the enactment of the VAT Act 2013 (Act 870) taxpayers who have been authorised by the Commissioner General to use their own computer –generated invoices as well as electronic cash registers to re-programme their equipment to ensure that VAT is charged at the rate of 15 per cent and 2½ per cent on their customers invoice accordingly.

In a statement issued by Mr George Blanckson, GRA Commissioner General and obtained by the Ghana News Agency in Accra on Thursday said registered entities must use the GRA’s VAT/NHIL invoices adjusted as indicated in any instance where they are unable to use their computer generated invoices or electronic cash register receipts.

The GRA statement reminded the business community that their Tax Returns should be submitted to the Commissioner-General in the last working day of the month, whether or not the tax is payable for the period.

It also stated that, allowable period for deducting input tax is reduced from three years to six months, “all registered persons who are in possession of valid VAT/NHIL invoices for input tax claims, which are more than six months, are to claim them on the December 2013 returns”.

According to the GRA statement the scope of VAT has been extended to cover immovable property, the supply of financial services, domestic transportation of passengers by air and haulage as well as rental of vehicles, business activities of auctioneers, business of gymnasium and spa and the manufacture or supply of pharmaceuticals.

Meanwhile, all authorised to operate under the VAT flat rate scheme (VFRS) are required to charge and account for the tax at the rate of 3 per cent of the taxable value of their supplies.

Source: GNA