E-VAT pilot increases revenue by 58%, invoicing efficiency by 32% – GRA

The Ghana Revenue Authority has refuted claims that its new electronic VAT invoicing system has been unsuccessful, resulting in significant revenue losses.

In a statement on Thursday, GRA referenced a news report in the Daily Graphic that E-VAT systems have resulted in billions in Ghana Cedis.

According to the authority, it is implementing the E-VAT system in phases, with the Pilot Phase, which comprised 50 taxpayers, boosting both revenue and invoicing efficiency.

GRA revealed that the Pilot Phase resulted in a 58% increase in VAT revenue (or GH¢384 million) and a 32% increase in electronic VAT invoicing efficiency (savings of GH¢124 million).

For Phase 1, the GRA focuses on onboarding large taxpayers, accounting for 80% of VAT contributions, and the timeline has been revised from April 22, 2024, to May 31, 2024.

Phase 2 aims for medium and small taxpayers by December 2024, while Phase 3 aims for all VAT-registered taxpayers.

The GRA expressed confidence that the E-VAT system will significantly improve VAT contributions, combat tax evasion, and promote transparency in tax administration, as demonstrated in the Pilot Phase.

Below is the statement from the Ghana Revenue Authority

Update on Progress of E-VAT Implementation

1. The attention of the Ghana Revenue Authority (GRA) has been drawn to a publication in the Daily Graphic of Wednesday, 8 May 2024, titled “E-VAT in limbo: Retail outlets suck economy dry – Nation loses billions in revenue”.

2. The GRA takes this opportunity to provide clarity on its implementation of the EVAT system. Notably:

i) The rollout of the E-VAT system is being conducted using a phased approach.

ii) The Pilot Phase: A highly successful pilot has been completed with 50 taxpayers. The test and pilot phase provided a pathway for successful and seamless E-VAT implementation, which prioritized minimal disruption to taxpayers’ back-office processes. During the Pilot Phase, VAT revenue grew by over 58%, representing additional contributions in excess of GH¢384 million. Electronic VAT invoicing efficiency contributed to a revenue impact of GH¢124 million, accounting for 32% of this increase.

iii) Phase 1: The initial rollout phase which is currently ongoing, is focused on onboarding large taxpayers who account for 80% of VAT contributions. The revised timeline for Phase 1 is from 22 April, 2024 to 31 May, 2024. Initial results from Phase 1 onboarding have been highly encouraging, with a 175% progress rate so far, as measured against weekly onboarding targets.

iv) Phase 2: The second phase targets the onboarding of medium and small taxpayers by the end of December 2024.

v) Phase 3: The final implementation phase targets the integration of all other VAT registered taxpayers into the E-VAT system.

3. The GRA is confident of the significant positive impact that the E-VAT will have on VAT contributions and takes this opportunity to assure all stakeholders of its steadfast commitment to the comprehensive and rapid implementation of the E-VAT system. The successful rollout of E-VAT is poised to enhance revenue collection, combat tax evasion, and help promote transparency in tax administration, as demonstrated by the Pilot Phase.

4. The GRA takes this opportunity to thank all our clients for their cooperation and partnership as we continue to onboard them onto the E-VAT system.

5. For further inquiries or assistance regarding E-VAT implementation, taxpayers are encouraged to contact their nearest GRA office or visit our website.