GRA Takes VAT Enforcement To Grocery Shops

The Ghana Revenue Authority (GRA) has begun enforcing compliance of the Value Added Tax (VAT) at various grocery shops within the capital as part of enhancing responsiveness during the festive season.

This follows the successful enforcement of VAT compliance at various quarry sites across the country.

The enforcement team visited the Unique Collections, Zeno’s Yoghurt, Blush Avenue, Naya by Africa, Guvnor Restaurant and Shake’s Nation, all located within the A&C Shopping Mall at East Legon.

The six companies were apprehended for various infractions including issuing own invoice, issuing still receipts with no VAT component, without approval and non-issuance of any form of receipts.

In a similar operation, the team also visited Stu’s supermarket and Tilyz J Ventures both located at Dansoman.

They were found culpable of infractions including non-issuance of VAT and selective issuance.

Head of Enforcement, Accra Central Unit of the GRA, Joseph Annan, who led the task force, noted that some of the companies were not registered for VAT though they were supposed to, while those that have registered were not issuing the receipts.

He said the non-issuance of the VAT invoice attracted a penalty of twice the preemptive assessment that would be carried out or not more than 100 penalty units.

That, Mr. Annan said, would deter culprits from breaking the VAT regulation.

“It is also wise for businesses to come to the GRA to register as that is not considered as compulsory registration. However, when a company is arrested and forced to register – that will involve a penalty of not more than twice of that assessment or a term of imprisonment of not more than six months,” he said.

Earlier this month, Ag. Head of Operations at the GRA, Kwesi Eghan, debunked the notion that the authority had relaxed in its quest to ensure compliance.

He said enforcement through invigilation and mystery shopping or test purchases were key strategies of the Authority which could not be relegated to the background.

“These are compliance tools for revenue collection. Since September, we have invigilated about 175 taxpayers. Taxpayers are our stakeholders and we operate with them on the premise of trust,” he said.

Mr. Eghan, however, reiterated the authority’s resolve to enforce compliance in the hospitality sector and departmental shops during the festive season.

“These are plans to meet our target and to deepen the country’s growth prospect towards revenue mobilisation,” he added.