The Ghana Revenue Authority (GRA) is stepping up efforts to tighten Value Added Tax (VAT) compliance amid concerns that a significant number of businesses either fail to register for the tax or collect VAT from customers without remitting the money to the government.
Commissioner-General of the GRA, Anthony Kwasi Sarpong, said the situation represented a major challenge to Ghana’s efforts to increase domestic revenue mobilisation.
Speaking at the 14th Annual International Tax Conference 2026, Mr Sarpong disclosed that the Authority’s assessment had revealed substantial weaknesses in VAT registration and compliance among businesses.
He said only about four out of every ten businesses were properly charging and complying with VAT requirements, while the remaining businesses either failed to register or did not remit VAT collected from customers.
“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.
The GRA Commissioner-General said the Authority was therefore combining technology with intensified enforcement measures to close the compliance gaps and improve VAT collection.
A key component of the strategy is the implementation of the Fiscal Electronic Devices Act, which will require most businesses to conduct transactions through government-approved electronic devices.
According to Mr Sarpong, the system will give the GRA greater visibility over business transactions and enable the Authority to monitor economic activity in real time.
He explained that the technology would also allow the GRA to reconcile transactions and determine the amount of VAT due at the end of each month.
However, he cautioned that technology alone would not be enough to address the problem, saying the Authority’s pilot implementation had already revealed attempts by some businesses to bypass the 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 GRA would therefore complement the digital system with stronger compliance monitoring to ensure businesses continued to use the approved devices and properly account for VAT collected.
He stressed that the combination of technology and enforcement was necessary to improve compliance and ensure that taxes collected from consumers reached government.
The GRA’s renewed focus on VAT compliance comes as the Authority seeks to strengthen domestic revenue mobilisation and address leakages within the tax collection system.
The measures are expected to improve transaction visibility, strengthen accountability among businesses and help government recover revenue that may otherwise be lost through non-compliance.
