Accra, July 5, GNA – The Ghana Revenue Authority (GRA), Osu Small Taxpayer Office, has organised a seminar for taxpayers within its catchment area to educate them on the new VAT Act, 2013 (ACT 870) to ensure prompt compliance.
Mr Kwesi Ackaah, Chief Revenue Officer at the GRA said the new VAT Act 870 replaces the old Act 506 which received Presidential assent on December 30, 2013 and notification in the Gazette on December 31, 2013.
Mr Ackaah explained that section 1(1) of Act 870 defined VAT as tax on general consumption expenditure, charged on supplies of goods and services made in the country other than exempt goods or services; and import of goods or import of services other than exempt import.
He said the tax is chargeable on the value of a supply of goods by a diplomatic mission, international agency, an organization, a government agency, or who has obtained a relief from or a refund from the tax on the importation or domestic acquisition of the goods.
Mr Ackaah said section 6 of Act 870 said the registration threshold for value of taxable supplies is made by a person exceeding GH¢ 120,000 at the end of any period of twelve or less months.
He said non-resident person who provides telecommunication services or electronic commerce in the country other than through a VAT-registered person is required to register.
Mr Ackaah said the new Act 870 extends the coverage of the tax to some business activities which were previously outside the tax net which include the sale of immovable property by an estate developer and the supply of financial services that are rendered for a fee, commission or a similar charge.
He said under Act 870 financial services is defined as the provision of insurance; issue, transfer, receipt of, or dealing with money whether in domestic or foreign currency, or any note or order of payment of money, provision of credit or operation of a bank account or an account of a similar institution.
He said life insurance and reinsurance services are however exempt from the tax whether or not such services are rendered for a fee, commission or a similar charge.
Mr Ackaah said other taxable business activities include supply of domestic transportation of passengers by air; and the supply of haulage as well as the rental or hiring of passenger and other vehicles.
Others are the business activities of auctioneers and promoters of public entertainment, the business of gymnasium and spa and the manufacture or supply of pharmaceuticals listed under Chapter 30 of the Harmonized Systems Commodities Classification Code, 2012 other than supplies at the retail stage.
Reverend David Okoe, Chief Revenue Officer in charge of Training at GRA said the seminar was part of activities being carried out by GRA to educate taxpayers on their tax obligations to ensure compliance.
He educated participants on rent tax, as well as tax returns and submission and advised taxpayers to set up appropriate record-keeping systems, and ensure that expenditure was properly recorded and classified for tax purposes.
GNA EN-GB X-NONE X-NONE
This article has 0 comment, leave your comment.