Traders' union asks GRA for a softer touch as VAT compliance drive begins

Pinned summary · as of 15:53

The Ghana Union of Traders' Associations (GUTA) has asked the Ghana Revenue Authority (GRA) to treat market vendors and shop owners courteously as a nationwide VAT campaign gets under way. GUTA president Clement Boateng spoke at the campaign's launch, and the GRA says it will combine public education with enforcement.

What we know

• GUTA urged the GRA to have its field officers approach traders in a friendly and cooperative way during visits to markets and businesses under the new VAT campaign.
• Mr Boateng asked that the tax authority explain to shoppers what benefit awaits those who request a VAT invoice when they pay for goods.
• The GRA has set the campaign up as a mix of public education, awareness work and enforcement aimed at getting eligible businesses to meet their VAT obligations, and it says it will keep engaging the business community as the drive continues.
• Mr Boateng said GUTA stands ready to work alongside the GRA, and he pressed for cooperation to take priority over confrontation as officers step up their work.

What's disputed / unconfirmed

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  Rainbow Radio Online reported that the GRA launched the drive with the aim of shrinking a VAT shortfall it puts at 60 percent; no other report gives this figure.
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  Rainbow Radio Online said officials began by auditing invoicing practices at the Accra Mall on Tuesday, and that inspectors under Dr. Martin Kolbil Yamborigya, who heads the GRA's Domestic Tax Revenue Division, discovered that a shop called Say Cheers had written no VAT invoice since 15 September even though it kept selling. This account has not been confirmed by other reports.
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  According to Rainbow Radio Online, staff at several shops were told to issue a VAT invoice for every taxable sale instead of waiting for customers to ask. Dr. Yamborigya described compliance with the VAT booklet system as poor. He also said the GRA does not intend to disrupt operations or harass owners, adding: “This campaign is not meant to harass businesses. We will show the human face.”
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  The Vaultz News reported that GUTA said it could hold briefing and training events to teach members about their tax responsibilities, and that regular feedback meetings between the GRA and the union are expected to shape the campaign. Neither point appears in other reports.

Why it matters for Ghana

Shop owners and market traders in Accra and other cities may soon face visits from tax officers checking whether VAT invoices are being issued. How those visits are handled will affect daily trading, and the union's plea shows how anxious many traders are about heavy-handed enforcement. Shoppers are also part of the picture, since the GRA is being asked to explain the incentive attached to asking for an invoice.