E-VAT rollout on track, set to boost revenue collection

The Ghana Revenue Authority (GRA) has provided an update on the implementation of the Electronic Value Added Tax (E-VAT) system, stating that the rollout is progressing according to schedule.
Following a recent publication questioning the status of the E-VAT initiative, the GRA has affirmed its commitment to the comprehensive and rapid implementation of the system, which is expected to enhance revenue collection, combat tax evasion, and promote transparency in tax administration.

According to a press release issued by the GRA on 8 May, 2024, a highly successful E-VAT pilot has been completed with 50 taxpayers. The test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritized minimal disruption to taxpayers’ back-office processes. During the Pilot Phase, VAT revenue grew by over 58%, representing additional contributions in excess of GHs 384 million. Electronic VAT invoicing efficiency contributed to a revenue impact of GHs 124 million, accounting for 32% of this 384 million increase.

The E-VAT system’s rollout is being conducted in phases, with the Pilot Phase having been successfully completed.

The initial rollout phase which is currently ongoing, is focused on onboarding large taxpayers who account for 80% of VAT contributions. The revised timeframe for Phase 1 is 22 April, 2024 to 31 May, 2024. Initial results from Phase 1 onboarding are reported as highly encouraging, with a 175% progress rate so far, as measured against weekly onboarding targets.

The second phase is scheduled to target the onboarding of medium and small taxpayers by the end of December 2024.

The final implementation phase will targets the integration of all other VAT registered taxpayers into the E-VAT system.

The GRA also expressed its confidence about the significant positive impact that the E-VAT will have on VAT contributions, and took the opportunity to assure all stakeholders of its steadfast commitment to the comprehensive and rapid implementation of the E-VAT system.

The GRA expressed its appreciation for the cooperation and partnership of all stakeholders in the E-VAT implementation process. Taxpayers seeking further inquiries or assistance regarding the E-VAT system are encouraged to contact their nearest GRA office or visit the authority’s website.

The E-VAT system, deployed by the GRA, in accordance with the amended Value Added Tax Act 870, certifies every invoice issued by taxpayers in near-real-time for revenue assurance purposes.