Ghana Revenue Authority says 6 Out of 10 Businesses Do Not Properly Account for VAT

The Ghana Revenue Authority (GRA) has expressed concern over ongoing VAT compliance problems, particularly among businesses that collect VAT from customers but fail to transfer the money to the government.

GRA Commissioner-General Anthony Kwasi Sarpong said the situation was undermining efforts to increase domestic revenue. Speaking at the 14th Annual International Tax Conference 2026, he noted that the Authority had identified significant gaps in both VAT registration and compliance.

According to him, only about four in every ten businesses properly charge and account for VAT, while others either remain unregistered or, despite registering, collect VAT without remitting it to the government.

To address the problem, the GRA is combining technology with stricter enforcement. Mr Sarpong explained that the implementation of the Fiscal Electronic Devices Act would require many businesses to use government-approved electronic systems for transactions. This would enable the GRA to monitor sales in real time and reconcile the VAT owed at the end of each month.

However, he stressed that technology alone would not solve the problem. The GRA’s pilot programme has reportedly found cases where businesses operated the required machines while tax officers were present but stopped using them once the officers left.

Mr Sarpong therefore emphasised the need for stronger compliance measures alongside technology to ensure businesses properly account for and remit VAT.