The Ghana Revenue Authority (GRA) has raised concerns about persistent Value Added Tax (VAT) compliance challenges among businesses, warning that some companies collect VAT from customers but fail to properly account for or remit the funds to the government.
GRA Commissioner-General Anthony Kwasi Sarpong said the situation remains a significant challenge to Ghana’s efforts to improve domestic revenue mobilisation and tax compliance.
Speaking at the 14th Annual International Tax Conference 2026, Mr. Sarpong disclosed that assessments by the GRA had identified major weaknesses in VAT registration, collection and reporting among businesses.
GRA Raises Alarm Over VAT Compliance
According to the GRA Commissioner-General, only about four out of every ten businesses are properly charging and accounting for VAT, while the remaining six either fail to register for VAT or do not properly remit the taxes they collect.
The development, he said, creates a major gap in Ghana’s tax revenue system and limits government’s ability to generate the resources needed for national development.
The GRA is therefore combining technology, monitoring systems and stronger enforcement measures to improve VAT collection and ensure businesses comply with Ghana’s tax laws.
Electronic Tax System to Improve VAT Collection
Mr. Sarpong said the implementation of the Fiscal Electronic Devices Act will require most businesses to conduct transactions using government-approved electronic devices.
The system is expected to provide the GRA with greater visibility into business transactions and enable the Authority to monitor economic activities in real time.
According to the Commissioner-General, the technology will also allow tax officials to track transactions as they occur and reconcile the amount of VAT payable by businesses at the end of each month.
GRA Warns Businesses Against Tax Evasion
Despite the planned expansion of digital tax monitoring, Mr. Sarpong stressed that technology alone cannot solve Ghana’s VAT compliance problems.
He revealed that the GRA’s pilot programme had uncovered instances where some businesses allegedly attempted to circumvent the electronic monitoring system.
He explained that some businesses appeared to use the approved machines while GRA officers were present but stopped using them after the officers left.
The GRA therefore plans to combine digital tax systems with stronger field monitoring, enforcement and compliance measures to improve VAT collection across the country.
VAT Compliance Critical to Ghana’s Revenue Mobilisation
The latest concerns highlight the importance of improving VAT compliance in Ghana as government seeks to increase domestic revenue and reduce tax leakages.
The GRA’s use of electronic fiscal devices and enhanced compliance monitoring is expected to help improve tax administration, VAT collection, business accountability and government revenue mobilisation.
Source: newsthemegh.com