{"id":3713,"date":"2022-10-28T16:35:40","date_gmt":"2022-10-28T16:35:40","guid":{"rendered":"https:\/\/wtsnobisfields.com\/?p=3713"},"modified":"2022-10-28T19:27:35","modified_gmt":"2022-10-28T19:27:35","slug":"ghana-introduces-electronic-vat-system-up-front-vat-payment-and-taxation-of-e-commerce","status":"publish","type":"post","link":"https:\/\/wtsnobisfields.com\/blog\/2022\/10\/28\/ghana-introduces-electronic-vat-system-up-front-vat-payment-and-taxation-of-e-commerce\/","title":{"rendered":"Ghana introduces Electronic VAT system, Up-front VAT payment and Taxation of E-Commerce"},"content":{"rendered":"
The Value Added Tax Act, 2013 has been amended by the Value Added Tax (Amendment) Act which came into force on 12 September 2022. The purpose of this amendment is to compel taxpayers who qualify to register for value-added tax (VAT) to register on time. The main policy rationale for the provisions introduced by this amendment is to aid tax authorities in Ghana in their effort to tighten the laws to ensure non-resident persons who supply taxable goods or services, register for VAT.<\/p>\n
The principal enactment has been amended to provide for the following: the upfront payment of VAT by unregistered importers, the taxation of electronic commerce, the electronic issuance of tax invoices, and the zero-rating of the supply of locally assembled vehicles. In this alert, we highlight the key areas of the amendment below:<\/p>\n
<\/p>\n
Up-front payment by unregistered importer<\/strong><\/p>\n Unregistered Non-Resident Persons Providing Telecommunication and Ecommerce Service<\/strong><\/p>\n Deductible input tax<\/strong><\/p>\n Submission of tax return and date of payment of the tax<\/strong><\/p>\n A non-resident person who provides telecommunication services or electronic commerce to persons for use or enjoyment in the country, other than through a Value Added Tax registered agent shall:<\/p>\n It is relevant to note that, both the days for filing and the payment of tax includes weekends and public holidays, for a nonresident person who provides telecommunication services or electronic commerce to persons for use or enjoyment in the country, other than through a Value Added Tax registered agent<\/p>\n Interpretation<\/strong><\/p>\n The following \u201cdefinitions now apply;<\/p>\n Zero rated supply<\/strong><\/p>\n Effective 1 September, 2022 to 31 December, 2023, supply of locally assembled vehicles under the Ghana Automotive Development Programme will be classified as zero rated supply<\/p>\n <\/p>\n Takeaways<\/strong><\/p>\n <\/p>\n\n
\nreturn.<\/li>\n<\/ul>\n\n
\ncommerce to persons for use or enjoyment in the country, other than through a Value Added Tax registered agent to register, if that person makes a taxable supply.<\/li>\n\n
\nfor VAT shall not qualify for deductible input tax for the supply of a digital service.<\/li>\n\n
\n
\nwith this Act;<\/li>\n
\nsupply of goods or services by a taxable person in accordance with this Act and
\nRegulations made under this Act;\u201d.<\/li>\n<\/ol>\n\n
\nadministrative challenge no more exists since one can file and pay taxes without physical presence at GRA or a bank. It is therefore time to reconsider this law and open the gate to other taxpayers to be able to file and pay tax returns on Saturdays, Sundays and Public holidays.<\/li>\n
\nreportage of non-compliant suppliers and culture of compliance among both vendors and buyers.<\/li>\n
\ncontinue the status quo and thereby denying GRA the opportunity to widen the tax net.<\/li>\n
\nmanipulated to reduce the tax payable in defeat of the intent of the system.<\/li>\n