The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) have revealed that they have reached a strategic consensus regarding the implementation of the Value Added Tax (VAT) Act, 2025 (Act 1151). This agreement follows a series of joint consultations aimed at addressing the concerns of the trading community, particularly those transitioning from the VAT Flat Rate Scheme to the new legislative framework.
Under the terms of the agreement, as stated in a press release, all eligible taxpayers are required to charge and account for VAT at the statutory effective rate of 20%, which encompasses the VAT, NHIL, and GETFund Levy through the conclusion of the first quarter of implementation. This period is intended to serve as a stabilization phase, allowing the GRA to monitor the rollout while GUTA gathers critical feedback from its members to inform future policy discussions.
According to the release, to address the technical complexities of the transition, both organizations have moved to establish a Joint Technical Team. This body, composed of representatives from both the GRA and GUTA, is tasked with identifying and resolving sector-specific challenges related to VAT record-keeping, the processing of input VAT claims, and calculation accuracy. The recommendations produced by this team will serve as a foundation for further administrative reviews.
In tandem with these technical efforts, the GRA has pledged to launch an intensified nationwide sensitization program. This initiative is designed to provide traders with the necessary tools and knowledge to navigate the new compliance requirements effectively. By prioritizing education and collaborative support, the GRA aims to ensure that the transition remains seamless for businesses of all sizes.
The leadership of GUTA expressed its support for the new regime by encouraging its members to comply with the provisions of Act 1151. Both the GRA and GUTA explained that they remain committed to a continuous dialogue that prioritizes thje welfare of traders and consumers while supporting the broader objectives of national economic development.
Story By: Eric Boateng
