Acting Deputy Commissioner of Strategy, Research & Policy, and Head of VAT Administration at the Ghana Revenue Authority (GRA), Dr. Dominic Naab, said businesses that meet the threshold are expected to register and obtain a VAT registration certificate from the Authority.
Businesses engaged in taxable activities with an annual turnover above GH¢750,000 are required to register for Value Added Tax (VAT), the Ghana Revenue Authority (GRA) has stated.
Speaking to Isaac Addae on Morning Starr on Starr FM, Dr. Naab explained that businesses involved in taxable activities must first meet the prescribed turnover threshold before they are required to register for VAT.
“If you deal in taxable activity, you should register. But before you register, you have to meet the threshold. The threshold is 750,000. So once your turnover is above that, they are required to register for the VAT,” he said.
He explained that once a business is registered, the GRA issues a VAT registration certificate to confirm its status.
Dr. Naab further clarified that businesses below the GH¢750,000 threshold are not required to register for VAT solely on the basis of their turnover.
He urged consumers to be mindful of the VAT status of businesses when purchasing goods and services and to demand valid VAT invoices from businesses that are registered.
According to him, advertised prices by VAT-registered businesses should be VAT-inclusive, meaning consumers should not be required to pay an additional VAT amount on top of the advertised price.
The GRA says the clarification forms part of its nationwide VAT compliance campaign aimed at improving public understanding and encouraging greater compliance with tax obligations.
Source: Starrfm.com.gh/Pamela Quayson
