Ghana Revenue Authority reports 60% shortfall in VAT collection

The Ghana Revenue Authority (GRA) has reported that the country collects only 40 percent of the Value Added Tax (VAT) it is legally owed. Dr. Martin Kolbil Yamborigya, Commissioner of the Domestic Tax Revenue Division, stated that this compliance gap represents a significant national challenge, as VAT is a critical source of revenue for funding public infrastructure, schools, and hospitals.

To address this, the GRA launched a nationwide campaign titled “Request your VAT Invoice, Help Build Our Nation.” The initiative encourages both businesses and consumers to ensure VAT invoices are issued at checkout to prevent businesses from pocketing tax or under-reporting sales. There are currently approximately 60,000 active VAT taxpayers in the system.

In response to the enforcement drive, Clement Boateng, President of the Ghana Union of Traders’ Associations (GUTA), has called on the GRA to adopt a “human face” approach. He urged tax officers to be friendly and accommodating during market compliance visits and emphasized the need for extensive education and sensitization to help the business community understand their obligations.