The Ghana Revenue Authority (GRA) has launched a special enforcement task force to tackle a massive shortfall in Value Added Tax (VAT) compliance, which it says is depriving the state of critical revenue for national development.
GRA Commissioner-General Anthony Kwasi Sarpong revealed that only 40% of registered taxpayer companies are currently honouring their VAT obligations, leaving a staggering 60% non-compliance rate.
“This significantly undermines domestic revenue mobilisation and limits the state’s ability to finance essential public services and national development programmes, such as schools, hospitals and roads,” Mr. Sarpong stated at the inauguration of the new National VAT Compliance and Enforcement Team in Accra yesterday.
The 26-member team, chaired by the acting Commissioner of the Domestic Tax Revenue Division, Dr. Martin Kolbil Yamborigya, is a key mechanism for enforcing the new Value Added Tax Act, 2025 (Act 1151), which took effect on January 1. It comprises officers with expertise in audit, investigation, intelligence, and legal enforcement.
Alarming Findings Prompt Action
The Commissioner-General cited a December enforcement experiment in Accra that exposed the scale of the problem, finding three out of every five shops were either not registered for VAT, not charging it, or charging but not remitting the tax to the state.
“That means that 60 per cent of every shop that you see on the street are not complying with their VAT obligations. And that is why… we have quickly put in this national enforcement team,” Mr. Sarpong explained.
He stressed the GRA’s goal is to move “way beyond the passing grade, which is 90 per cent” compliance.
Education First, Enforcement to Follow
Mr. Sarpong outlined the team’s dual approach, prioritising taxpayer education and support to encourage voluntary compliance. “Our first approach is to assist taxpayers to comply, not to punish them,” he said.
However, he issued a stern warning to persistently non-compliant businesses: “Where the law is deliberately ignored, we will not hesitate to enforce compliance.” The GRA is deploying data analytics to identify offenders across the country.
Dr. Yamborigya emphasised that enforcement is fundamentally about fairness. “When everyone pays what is due under the law, the burden is shared equitably,” he said, noting it protects compliant businesses from unfair competition.
A Call for Shared Responsibility
The GRA leadership urged both businesses and consumers to play their part. Mr. Sarpong called on eligible but unregistered businesses to register immediately, promising a 24-hour turnaround for applications.
He also urged consumers to consistently demand VAT invoices, stating, “Anytime a VAT invoice is not demanded, the tax meant for the state ends up in private pockets. VAT compliance cannot be achieved by the tax authority alone.”
A lead member of the task force, Wisdom Xetor, said nationwide operations begin immediately, targeting non-registration, failure to file returns, and non-remittance of collected VAT. The strategy will be intelligence-led, focusing on high-risk sectors and habitual offenders.
