Tag Archives: vat

Common VAT Pitfall that Tax Audits Reveal – Part 2

VAT Pitfall

Part one of this article focused on common issues that arise from the VAT Tax Audits by the Ghana Revenue Authority (GRA). In the final part of the article, we discuss the taxpayers’ difficulties in complying with the Ghana VAT Law and recommend ways to deal with the difficulties. Challenges faced by taxpayers. Paying taxes […]

Common VAT Pitfall that Tax Audits Reveal – Part 1

Tax audits

The Ghana Revenue Authority uses tax audits to ensure compliance and to increase tax revenue. It carries out both comprehensive and desk audits. The GRA’s approach is to focus its audit efforts on high-risk areas where the risk of noncompliance is high. VAT is one of the high-risk areas in their scope.  In this article, […]


My post VAT has generated over 11,900 views. The post hit a nerve – concerns about the amount of tax and the workings of the VAT system. Many of the commentators noted that the telecommunications companies calculate VAT on Communication Service Tax (CST), GET Fund Levy (GETFL) and the National Health Insurance Levy (NHIL). So, […]

Can You Deduct VAT on Entertainment Expenses?

No, you can’t deduct VAT on entertainment expenses. The general rule is, VAT registered businesses can offset the input tax on taxable supplies they buy. For types of VAT Supplies see https://georgekatakdev.wpengine.com/2019/04/08/value-added-tax-basics/ VAT on entertainment is an exception to the rule above – you cannot offset it against output taxes to work out the net […]

Value Added Tax – The basics

In this post, we’re going to discuss the basics of Value Added Tax (VAT). By the end, you should understand the different types of supply, and how that affects the tax charged. What is VAT? VAT is a tax applied on the value added to goods and services at each stage in the production and […]

The challenges of getting a Tax Clearance Certificate – My experience

You need a tax clearance certificate (TCC) for certain transactions. And sometimes, you need it in a hurry! We described some transactions you will need a tax clearance for, and the process for getting a tax clearance in our blog, “How to obtain a tax clearance certificate without any hassle.” I process a lot of […]

The Effects of the Proposed Changes in VAT in Ghana

The Government of Ghana has, in its mid-year review of the budget, proposed changes to VAT. The changes will convert portions of the existing VAT into levies. The proposed changes are as follows: Pre-budget Budget proposal VAT 15% VAT 12.5% NHIL 2.5% GET Levy 2.5%     NHIL Levy 2.5% This blog analyses the effects […]

Records To Keep For Ghana Value Added Tax Purposes

It’s a saying often attributed to one of the Founding Fathers of the United States, Benjamin Franklin, that in this world nothing is certain, except death and taxes. And Value Added Tax (VAT) is a tax that can certainly impact both individuals and businesses alike. What is VAT? VAT/NHIL (National Health Insurance Levy) is a […]