GRA Raises Alarm Over Businesses Collecting VAT but Failing to Pay Government

The Ghana Revenue Authority (GRA) has raised concerns over persistent value-added tax (VAT) compliance challenges among businesses, with some firms allegedly collecting the tax from customers but failing to remit the proceeds to the government.

Commissioner-General of the GRA, Anthony Kwasi Sarpong, said the situation remains a significant challenge to Ghana’s efforts to improve domestic revenue mobilisation.

Speaking at the 14th Annual International Tax Conference 2026, Mr Sarpong said the Authority’s assessment had revealed substantial gaps in VAT registration and compliance among businesses.

“So today, we are saying that four out of every business in Ghana correctly charges VAT. The remaining six, they do not register. Or when they register, they collect their money and it doesn’t end up with government,” he said.

He explained that the GRA was combining technology with stricter compliance measures to address the challenges and improve VAT collection.

According to Mr Sarpong, the implementation of the Fiscal Electronic Devices Act would require most businesses to conduct transactions through government-approved electronic devices.

He said this would provide the GRA with greater visibility over economic transactions and enable the Authority to monitor business activities in real time.

The technology, he added, would allow the GRA to track transactions as they occur and reconcile the amount of VAT due at the end of each month.

However, Mr Sarpong cautioned that technology alone would not be sufficient to resolve the country’s VAT compliance challenges.

He said the GRA’s ongoing pilot programme had already exposed attempts by some businesses to circumvent the electronic monitoring system.

“The pilot we are undertaking is telling us that when our officers are on the field, the machine is working. As soon as we leave the shop, the machine stops working,” he said.

Mr Sarpong said the Authority would therefore combine technological solutions with stronger enforcement and compliance measures to ensure businesses properly account for VAT collected from customers.

“So we are combining this with strong compliance to ensure that compliance and the use of technology will help us to improve VAT on the ground,” he added.