2 Years After e-VAT: GRA Slow to Sign On Businesses – Low Compliance Amid Revenue Leakage
Two years after the introduction of the electronic Value Added Tax (e-VAT) system by the Ghana Revenue Authority (GRA), compliance remains low. The GRA has been slow in onboarding businesses, resulting in continued revenue leakage for the state. BackgroundThe e-VAT system, launched in October 2022, aimed to digitize VAT invoicing to enhance transparency and reduce tax evasion. Despite its potential, many businesses have yet to integrate the system, either due to lack of awareness or deliberate non-compliance. Implementation ChallengesThe GRA's phased approach targeted large taxpayers initially, with plans to extend to medium and small enterprises. However, the slow pace of implementation and limited enforcement have hindered widespread adoption. Revenue ImplicationsNon-compliance with the e-VAT system has led to significant revenue losses. Mystery shopping exercises revealed that many retail outlets are not issuing e-VAT invoices, denying the state millions of Ghana cedis […]