E-VAT pilot records 58% increase in revenue
The Ghana Revenue Authority (GRA) has stated that the successful piloting of its Electronic Value Added Tax (e-VAT) system has boosted revenue by 58 per cent.
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The authority said the pilot, which was completed recently, saw a notable increase in VAT revenue, representing an additional GH¢384 million, with electronic VAT invoicing efficiency contributing GH¢124 million.
The authority gave an assurance that it was committed to rapid implementation to maximise benefits of the e-VAT system to enhance revenue collection, combat tax evasion and promote transparency in tax administration.
The GRA explained that the e-VAT system was being implemented in a phased approach, starting with a successful pilot phase to ensure a smooth rollout for enhanced revenue collection.
Phase one completed
In a statement issued by the Communication and Public Affairs Department, the GRA said during the pilot phase, the e-VAT invoicing efficiency contributed GH¢124 million, accounting for 32 per cent of GRA’s revenue increase.
The GRA attributed the success of the pilot phase to the seamless implementation of the e-VAT system, which prioritised minimal disruption to taxpayers' back-office processes.
Timelines
The phase one, which started on April 22, this year, and is scheduled to end on May 31, 2024, focuses on onboarding large taxpayers who account for 80 per cent of VAT contributions.
The GRA said it had so far reported a 175 per cent progress rate so far, exceeding weekly onboarding targets. It said the phase two was scheduled for completion by December this year and would onboard medium and small taxpayers, while phase three would integrate all other VAT registered taxpayers into the e-VAT system.
With the e-VAT system, the GRA aims to enhance revenue collection, combat tax evasion and promote transparency in tax administration, building on the success of the pilot phase.
The GRA expressed confidence in the significant positive impact of the e-VAT system and assured stakeholders of its commitment to rapid implementation. The authority expressed confidence that the full implementation of the system would impact positively on VAT contributions.
The GRA said it was encouraged by the results and was committed to maximising the benefits of the e-VAT system. The authority thanked taxpayers for their cooperation during the pilot phase and encouraged them to continue supporting the implementation of the system.