Yendi tax payers educated on VAT flat rate

Yendi (NR) July, 29, GNA – The Ghana Revenue
Authority (GRA) on Tuesday organised a one day sensitisation seminar on the
Value Added Tax Flat Rate Scheme (VFRS) for traders and other institutions in
the Yendi Municipality.

The topics treated included VAT Flat Rate
Scheme (VFRS), Revenue Administration ACT, 2016 (ACT 915), Types of Tax Relief
among others.

Alhaji Mohammed Abubakar Yussuf, the Yendi
Municipal Chief Executive (MCE), said there is the need to sensitize and
educate the public on the importance of meeting tax obligation.

Alhaji Abubakar said the public need to know
the importance of paying tax to ensure that they honoured their tax obligation.

He said it was the responsibility of all
citizens to help create the awareness about the importance of tax payment.

Alhaji Abubakar commended the Yendi Small Tax
Office (STO) for holding the seminar and expressed hope that people would
honour their tax obligation.

Mr Stephen Adomah, Manager of Yendi Small Tax
Office, said one of the aims of GRA was to promote tax compliance through tax
education programmes.

He said one important thing that traders
needed most was record keeping of their income and expenses to enable them
assess their progress.

Mr Adomah reminded them on the need to file
monthly or annual returns to avoid penalties imposed in them.

Speaking on (VFRS) Mr Erasmus Ayenor Tei,
Senior Revenue Officer from the Tamale Medium Tax Office, said VFRS is a VAT
collection and accounting mechanism under which a registered Taxpayer who is a
retailer or wholesaler of goods applies a marginal VAT and National Health
Insurance Levy (NHINL) rate of three percent representing the net VAT payable
on the Value of taxable goods supplied.

He said the VFRS is restricted to wholesalers
(including importers) and retailers of taxable goods and not cover
manufacturers, service providers among others as provided in section 3(2) of
VAT ACT) 870 as amended by VAT (amendment) ACT, 2017 (ACT 948)

Mr Tei said VFRS covers the supply of all
taxable goods, except the supply of any form of power, heat, refrigeration or
ventilation section 1 (b) of VAT (amendment) ACT, 2017 (ACT 948).

He said wholesalers including importers and
retailers of taxable goods who are currently registered to operate the Standard
Rate Scheme (SRS) are to be automatically converted to VFRS.        

Mr Ayenor said the VFRS applies a marginal tax
percentage of three per cent on the value of taxable goods supplied.

He said the marginal tax percentage represents
the net VAT rate on the value of the taxable goods supplied and that the VFRS
does not therefore allow recovery of input tax.

Mr Victor Kwame Jiagge, Senior Revenue
Officer, speaking on Revenue Administration ACT 2016 (ACT 915), said the
taxpayer Identification Number System applies to the GRA, Controller and
Accountant General’s Department, Registry General’s Department, Banks,
Insurance Companies and other Financial Institutions and any other institutions
or persons whom the Minister may by Regulations prescribe.

He said for failing to maintain proper records
as required by tax law, a person is liable to pay a penalty for each month or
part of the month, during which the failure continues


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