4 out 10 businesses properly accounting for VAT-GRA Cssioner General
Commissioner-General of the GRA, Anthony Kwasi Sarpong, said the remaining businesses either fail to register for VAT or collect the tax from customers without remitting it to government.
The Ghana Revenue Authority says only about four out of every 10 businesses in Ghana are properly charging and accounting for Value Added Tax.
Commissioner-General of the GRA, Anthony Kwasi Sarpong, said the remaining businesses either fail to register for VAT or collect the tax from customers without remitting it to government.
He said the situation remains a major challenge to Ghana’s domestic revenue mobilisation efforts.
Mr Sarpong was speaking at the 14th Annual International Tax Conference 2026.
According to him, the Authority’s assessment has revealed significant gaps in VAT registration, compliance and payment by businesses.
“So today, we are saying that four out of every business in Ghana correctly charges VAT. The remaining six, they do not register. Or when they register, they collect their money and it doesn’t end up with government,” he said.
The Commissioner-General said the GRA is therefore turning to technology and stronger enforcement to improve VAT compliance.
He said the implementation of the Fiscal Electronic Devices Act will require most businesses to process transactions through government-approved electronic devices.
The system is expected to give the GRA real-time visibility over business transactions.
Mr Sarpong explained that this will allow the Authority to track sales as they occur and reconcile the VAT due at the end of each month.
He, however, said technology alone would not solve the problem.
According to him, a pilot programme has already shown that some businesses may attempt to avoid using the electronic devices when tax officers are not around.
“The pilot we are undertaking is telling us that when our officers are on the field, the machine is working. As soon as we leave the shop, the machine stops working,” he said.
Mr Sarpong said the GRA will combine the use of technology with stronger compliance checks to ensure businesses account properly for VAT.
“We are combining this with strong compliance to ensure that compliance and the use of technology will help us to improve VAT on the ground,” he added.
The GRA says improving VAT compliance is necessary to widen the tax net, increase domestic revenue and ensure that taxes collected from consumers are paid to the State.
