Section 41 of the Value Added Tax Act stipulates that businesses must consistently issue VAT invoices, and failure to adhere to this requirement constitutes a violation of the law.

However, some businesses in Ghana are flouting this law, either by not registering for VAT or by failing to provide VAT documentation to customers.

During an operation in Accra, the Ghana Revenue Authority uncovered VAT violations in 12 businesses.

These businesses were found to be in violation of various tax regulations, including failure to register for VAT and neglecting to issue VAT documentation.

The affected businesses include New Horizon Coldstore, Glorious Shoppers Delight, Kriskay Kiddies, Uncle Sas Autoparts, and Sunset Glow, among others.

Joseph Annan, the Assistant Commissioner at the Head-Accra Central Enforcement Unit of the Ghana Revenue Authority, stated in a press briefing after the operation that his team would continue to ensure that businesses comply with VAT and other tax obligations.

“This time, our focus extends beyond VAT; we are now committed to ensuring complete tax compliance. Taxation encompasses more than just VAT, so our scrutiny will encompass all applicable taxes for any given taxpayer we visit. We are not limiting our search solely to VAT,” he said.

He added that, “a comprehensive examination of the taxpayers we encounter in each area to identify their eligibility for various tax categories…this is how we intend to enhance our tax collection efforts. It’s not solely about VAT compliance; it’s about adhering to all tax categories”.

It should be noted that the Bank of Ghana reported a 92.4 percent increase in domestic VAT collection in its May 2023 Monetary Sector Report.

In the first quarter of this year, the increase was from GH649million to GH1.2billion.