The Ghana Union of Traders’ Associations (GUTA) has asked the Ghana Revenue Authority (GRA) to apply a human face to its VAT compliance visits as the Authority steps up efforts to improve tax compliance among businesses.
President of GUTA Clement Boateng says GRA officials deployed to markets and businesses as part of the nationwide VAT compliance campaign must be measured in carrying out their duties. Speaking at the launch of the VAT Compliance Campaign in Accra on Tuesday, he stressed the need for collaboration between the GRA and the business community to ensure the exercise achieves its intended objective.
He added that the officers deployed for the exercise should approach businesses in a manner that promotes cooperation rather than confrontation.
“After this launch today there is going to be a nationwide education, sensitization, enforcement and awareness creation to let Ghanaians know why there is the need for those who qualify to pay VAT has to do so,” Boateng said. “What I will entreat GRA to do is to attach a human face when the time comes for them to go to the market for the exercise. Their officers who will be deployed to the markets should be friendly and accommodative in carrying out their duty.”
A campaign born of a 60% compliance gap
The appeal comes as the GRA intensifies efforts to address a significant shortfall in VAT collections. In February 2026, the Authority inaugurated a 26-member National VAT Compliance and Enforcement Team to support the implementation of VAT reforms under the Value Added Tax Act, 2025 (Act 1151), which took effect on January 1, 2026.
Speaking at the inauguration, GRA Commissioner-General Anthony Kwasi Sarpong revealed that there was an estimated 60 per cent gap between the VAT revenue collected and what the GRA was capable of collecting, indicating that only four out of every 10 registered taxpayers were complying fully with their VAT obligations.
“VAT remains a critical source of government revenue, yet the data shows a significant compliance gap. This situation calls for urgent and sustained action,” Sarpong said.
A pilot enforcement exercise conducted on selected streets in Accra revealed that about 60 per cent of shops were either not registered for VAT, not charging VAT, or charging VAT but failing to remit it to the State. Sarpong stressed that while the GRA preferred cooperation through education and awareness, enforcement measures would be applied where taxpayers failed to register, charge VAT or remit VAT collected.
The Commissioner-General assured businesses that VAT registration could be completed within 24 hours, disclosing that the Authority was using data and analytics to identify defaulters. He added that GRA officers would be visible at business premises across the country, sometimes with prior notice and at other times unannounced, to ensure compliance with the law.
GRA targets 30% VAT gap by 2028
Dr Martin Kolbil Yamborigya, Commissioner for the Domestic Tax Revenue Division of the GRA, who chairs the enforcement team, said the Authority is targeting a reduction in the country’s VAT gap from the current 60 per cent to about 30 per cent by the end of 2028.
“According to our VAT strategic plan, we are hoping that between now and the end of 2028 we should be able to close this gap from the current 60 per cent to about 30 per cent,” he said. “That means that at least we should be able to collect 30 per cent more in addition to what we are currently collecting.”
Dr Yamborigya spoke to the media on the sidelines of the launch after visiting some shops at Accra Mall to check their VAT compliance. He explained that the exercise identified instances where businesses were not consistently issuing VAT invoices to customers, but said the GRA opted to educate and engage the affected businesses rather than immediately resorting to punitive measures.
“This campaign is not meant to harass businesses and we don’t also intend to disadvantage any business,” he said. “If we were not to show human face, we probably would have called for their arrest immediately. We are going to be more engaging, we are going to be more educative. But where we find out that the non-compliance is deliberate, that’s what we apply.”
A turbulent year for VAT implementation
The compliance campaign comes after a turbulent period in the implementation of the new VAT regime. When Act 1151 took effect in January 2026, GUTA clashed with the GRA over the transition from the previous four per cent flat rate scheme to the standard 20 per cent VAT system, which the association described as burdensome and detrimental to traders, particularly those operating within the informal sector.
Boateng argued that the new regime introduced complex input-through-output calculations, excessive paperwork and cascading price effects that were pushing up costs for businesses and consumers alike. He said many traders lacked the technical expertise and administrative capacity to handle the new computation requirements, exposing them to unintentional non-compliance and possible penalties.
The two institutions subsequently reached an agreement on transitional measures, establishing a Joint Technical Team to address sector-specific challenges including VAT record-keeping requirements, input VAT claims and VAT calculation. The GRA pledged a collaborative approach to support businesses transitioning from the Flat Rate Scheme, while GUTA urged its members to comply with the new law.
Consumers to be rewarded for demanding VAT invoices
The GUTA President also urged the GRA to educate consumers on the benefits and incentives available to those who demand VAT invoices when making purchases.
“I will also urge GRA to include in their education the incentive that will be given to consumers who demand VAT invoices after their purchase,” Boateng stated.
In July 2026, Finance Minister Dr Cassiel Ato Forson announced that the government would introduce a VAT reward scheme under which customers who obtain valid VAT invoices will qualify for periodic rewards. “This will actively involve every Ghanaian in protecting the nation’s tax base,” Dr Forson told Parliament during the Mid-Year Budget Review.
The scheme is expected to encourage more consumers to demand official VAT invoices during transactions, providing tax authorities with better visibility of business activities and helping to improve compliance among businesses. Dr Forson said strengthening Ghana’s tax system was critical to creating a sustainable revenue base to finance national development priorities, adding: “This is how a tax culture is built, not through fear, but through participation, transparency and reward.”
GUTA pledges cooperation
Boateng said GUTA would encourage its members to cooperate with the GRA as the Authority begins nationwide education, sensitisation and enforcement activities under the campaign. He noted that effective cooperation between the tax authority, businesses and consumers would be critical to improving Ghana’s tax revenue mobilisation.
“GUTA on our part will also encourage our members to be cooperative so that together we will have a smooth program and improve on our tax to GDP ratio for the betterment of Mother Ghana,” he stressed.
Boateng acknowledged the importance of taxation to national development, noting that every country relies on tax revenue to finance its development agenda. “As we are all aware, every country needs tax to embark on its developmental agenda and our dear country Ghana is no exception,” he highlighted.
Ghana’s tax-to-GDP ratio currently stands at approximately 13.4 per cent, well below the World Bank’s recommendation of 25 per cent for sustainable economic growth. The government is targeting a ratio of 15 per cent by the end of 2026, with VAT reform and digital tax administration identified as key drivers.
Digital reforms and future plans
The GRA has also announced plans to introduce automation under the Fiscal and Electronic Devices Act later in 2026, alongside the taxpayer reward scheme. The Authority has already piloted a cross-border digital system for collecting VAT from non-resident platforms, which the Finance Minister said is expected to generate approximately GH¢2.3 billion in its first full year of operation, with revenues growing by around 20 per cent annually thereafter.
VAT collections have shown strong growth in 2026. Domestic VAT collections rose 35.7 per cent year-on-year to GH¢2.06 billion in March, while total domestic VAT for the first quarter increased 20.8 per cent to GH¢5.82 billion compared with GH¢4.82 billion for the same period in 2025.
The VAT Compliance Campaign is expected to combine education, awareness creation and enforcement to ensure that businesses that qualify to charge VAT comply with their obligations, with the GRA targeting a major reduction in the VAT gap over the next two years.
The 26-member Compliance and Enforcement Team is chaired by Dr Martin Kolbil Yamborigya and comprises specialists in audit, investigation, intelligence, legal enforcement and taxpayer services.
