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VAT Flat Rate to be operational by May
Accra, March 1, GNA - The VAT Flat Rate Scheme (VFRS) is
expected to be operational by May this year, Mr Anthony E.
Minlah, Commissioner of Valued Added Tax (VAT), said on
Thursday.
He told a two-day seminar in Accra organised by the VAT
Service for executives of the Ghana Union of Traders
Association (GUTA) and other affiliate bodies of the
Association to educate them on new VAT system that, although
Parliament had passed the Bill the President was yet to give
his accent.
Mr Milah said the system was an amendment of the existing
tax law, which would expand the tax base and ensure easier
record keeping, adding that it would be an easier system to
operate.
Mr Anthony Ackah-Mensah, Head of Training and Development
Unit of the VAT Service, said the VFRS was a marginal three
percentage tax on goods to be charged by retailers and it
would operate concurrently with the current invoice credit
method of charging and accounting for VAT.
He said all retailers of goods who were currently registered
and were operating the 15 percent VAT rate scheme would be
required to operate the VFRS when it became operational.
"It is only those who will be authorized in writing by the
Commissioner of VAT who will continue to operate the current
invoice credit VAT scheme," he said.
Mr Ackah-Mensah explained that all retailers who made a
daily sale of 350,000 cedis would be expected to register
under the new scheme when it became operational.
He said those operating under the old system would not be
re-registered but would use the old certificates with
special stickers attached to them.
He said the certificates would be free and warned officers
who would demand money for issuing of certificates.
Mr Ackah-Mensah said manufacturers and wholesalers of goods,
service providers and construction firms did not qualify to
operate the system.
He advised all traders to submit returns regularly and pay
the tax due at the right time and support the VAT Flat Rate
Scheme.
GNA
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