The Ghanaian government is targeting a revenue boost of GH¢750 million following the parliamentary approval of the Value Added Tax (VAT) Amendment Bill. This legislation introduces the E-VAT policy, which modernizes the tax framework by incorporating electronic commerce and mandating the electronic issuance of tax invoices.
Key provisions of the reviewed law include requirements for upfront VAT payments by unregistered importers and the zero-rating of locally assembled vehicles to encourage domestic industrial growth.
According to the Finance Committee of Parliament, the E-VAT system is designed to bridge gaps in tax compliance and address inequalities within the existing structure. The Ghana Revenue Authority (GRA) indicated that the transition to electronic collection was scheduled to begin on October 1, 2022.
This shift toward VAT optimization comes at a critical time, as the Ministry of Finance significantly downgraded its revenue expectations for the Electronic Transfer Levy (E-Levy) – from an ambitious $1.6 billion to just GH¢611 million – due to implementation hurdles. In contrast, the overall annual revenue target for VAT was revised upward to more than GH¢15.4 billion.
