The Commissioner-General and Management of the Ghana Revenue Authority (GRA) and the President and Executives of the Ghana Union of Traders’ Association (GUTA) convened a joint consultation meeting following the enactment of the Value Added Tax Act, 2025 (Act 1151).
The primary purpose of this meeting was to deliberate on the impact of the new legislation, particularly for the majority of GUTA members who had previously operated the VAT Flat Rate Scheme. Additionally, the meeting provided an opportunity to address various transitional issues associated with the rollout of the VAT Reforms.
Agreements reached during the meeting:
All eligible taxpayers, including members of GUTA, are required to charge and account for VAT at the applicable effective rate of 20% (comprising VAT, NHIL, and GETFund Levy) until the end of the first quarter of implementation, in accordance with the law. This approach aims to facilitate the rollout of the new system, while enabling GUTA to provide feedback to GRA regarding the concerns raised during the meeting.
A joint technical team comprising representatives of GUTA and GRA will be established. This team will be responsible for addressing sector-specific challenges, including requirements for VAT record keeping, input VAT claims, and VAT calculation. The Joint Technical Team will subsequently make recommendations for further review.
Education and sensitisation programmes will be intensified nationwide. These efforts are designed to guide traders through the transitional arrangements and ensure compliance with the new VAT regime.
The GRA has reassured traders who formerly operated under the VAT Flat Rate Scheme of its full support and its intention to adopt a collaborative approach to guarantee a smooth transition. In turn, GUTA has encouraged its members to comply with the new VAT law. Both organisations have reaffirmed their commitment to ongoing dialogue, prioritising the interest of traders, consumers, and national development.
