The Ghana Revenue Authority (GRA) wishes to inform the general public that to improve Value Added Tax (VAT) compliance and in accordance with the Value Added Tax (Amendment) (No.2), 2017(Act 954), the Commissioner-General has appointed the under-listed entities as Value Added Tax Withholding Agents for GRA with effect fromTuesday, 1stOctober, 2019.
The duties of the Value Added Tax Withholding Agents are:
- a) Withhold from the payment to a registered Value Added trader/supplierseven percent (7%) of the taxable output value of VAT standardrated supplies.
- b) Issue a Withholding Value Added Tax Credit Certificate in the form prescribed by the Commissioner-General to the Supplier
- c) Submit Withholding VAT Returns and pay the VAT withheld to the Commissioner-General for the period not later than the 15th day of the month immediately following the month to which the returns relate.
Thus at the time of payment, an appointed VAT withholding agent must withhold 7% of the taxable value of all domestic taxable supplies made by a Standard Rated taxable person/supplier and the difference of 5.5% of the taxable value, along with the taxable value is paid to the taxable person/supplier. This arrangement applies only to transactions with the Appointed VAT Withholding Agents. Entities who are not appointed VAT Withholding Agents are not required to withhold, and therefore are to pay the full amount of VAT to their suppliers.
Suppliers will continue to account for output VAT at 12½% on all taxable transactions and take credit of all allowable input taxes. The input taxes should include VAT withheld by the Appointed VAT Withholding Agents with their VAT Withholding Certificates issued to them as supporting evidence.
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