VAT Consultancy Services
The Ghana Revenue Authority (GRA) is the government entity who is responsible for the collection and management of the Taxes.
All the legislation including the guides and clarifications are provided by the authority to help the business organizations.
Value Added Tax (VAT) was introduced by Ghana government in 1998. VAT is an indirect tax that is levied on the consumption of goods and services. The imposition of vat would greatly have an impact on the functioning of the business and with increased risk, volume and complexity of the transactions it becomes difficult for the taxpayers to meet the tax compliance.
Since the inception of VAT in Ghana, we at PISTIS And Associates has been providing continuous professional support to the taxpayers to ensure that they are adopting proper tax procedures and VAT compliance. We can help your business in analyzing your transactions and solving tax disputes.
VAT CONSULTANCY SERVICES- FAQ
In Ghana, VAT is applicable on services if the place of supply is in Ghana and it applies to all services including consultancy services, management services, advertisement services, etc. As mentioned, taxability is determined based on the place of supply rule. So, if service is given in Ghana or given from Ghana, the place of supply will be considered in Ghana unless a specific exception applies.
We can consider the following to have a simple understanding but there can be changes based on scenarios or exceptions. So, the Tax rate for a service can be determined only by seeing the facts of the case and cannot be generalized.
- If service is done in Ghana company: taxability is 7.5%
- If the service is done from Ghana to outside Ghana: export of service 0%
- If service is given from outside Ghana to Ghana: taxable under RCM
Is consultancy VAT exempt?
As per Ghana VAT Law, exempted supplies are specifically mentioned as bare land supply, local passenger transport, residential property supply (with conditions), and some financial services. So, all other supplies shall be either standard-rated (5%) or Zero-rated (0%). So, consultancy service shall be either 0% or 5% based on the transaction nature and not exempted supply.
Does consultancy attract VAT?
Consultancy services may attract VAT if provided within the scope of Ghana VAT. It may be either 7.5% or 0% based on the nature of the transaction. For example, a business consultancy given to a resident person in Ghana will be 7.5% but given to a non-resident maybe 0%. The tax rate for a service can be determined only by seeing the facts of the case and can not be generalized.
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