VAT Registration

Who should get Excise/VAT Registration in Ghana?

As per Ghana VAT Law, there are two types of VAT registrations in Ghana. One is Mandatory VAT Registration & the other is Voluntary VAT Registration.

A. Mandatory VAT Registration:

1. A person, natural or otherwise, who has made supplies/sales of more than 375,000Ghc over the previous 12-months period shall mandatorily do his VAT registration in Ghana.
2. Any person, who does not have a place of residence in the Ghana (Non-resident) shall mandatorily do VAT register in Ghana if he makes any supply in Ghana irrespective of his turnover. This mandatory VAT registration is applicable to such nonresidents only if no one else is responsible to pay VAT on his behalf against such supplies.
   Eg: Mr. Andrew, a UK Citizen, does not have a place of residence in Accra. He performed services worth 100,000Ghc to the residents in Ghana who do not have a VAT registration in Ghana. In this case, even though the supply value is less than the mandatory VAT registration threshold, Mr. Andrew shall apply for VAT registration in Accra. He will be responsible to collect and liable to pay VAT to the authority. This rule applies to both natural and judicial persons.
3. Further, if any person who estimates, on reasonable grounds that his supplies/sales will exceed 500,000Ghc in the next 30-days shall also mandatorily apply for VAT registration in Ghana.

B. Voluntary VAT Registration:

1. A person can opt for VAT registration in Ghana under the voluntary option if his supplies/sales for a previous 12 months period exceed Ghc200,000.
2. In cases, a person who estimates, on reasonable grounds, that his supplies/sales will exceed Ghc200,000 (but less than Ghc500,000) in the next 30-days may opt for VAT registration voluntarily.
3. A person can opt for VAT registration in Ghana under voluntary option if his expenses which are subject to tax for a previous 12 months period exceeds Ghc200,000 or more.
4. In cases, a person who estimates, on reasonable grounds, that his expenses which are subject to tax will exceed Ghc200,000 in the next 30 days also can opt of VAT registration under the Voluntary VAT registration method.

Exceptions for VAT registrations in Ghana

Federal Tax Authority has clarified that a person can apply for an exception from VAT registration in Ghana if 100% of his supplies/sales are Zero-rated as per the provisions of the Law. Such persons who want to opt for the exception from VAT registration shall notify the authority about their decision through the VAT registration form. Authority, if they feel such an exception is reasonable, will accept the application of the exception.

Concept of Tax Group

As per GRA VAT laws, any person conducting business in Ghana is not allowed to have more than one VAT Registration number. Any person who has economic, financial or regulatory interests in multiple organizations may group their entities under one tax group.

Such grouping of businesses under one tax group eases the compliance requirements of the Ghana VAT Laws. The tax group shall be considered as one single entity for the purposes of Ghana VAT. Any transactions between the entities inside the tax group shall be out of the scope of Ghana VAT.

Why PISTIS And Associates Chartered Accountants ?

Though it is perceived that the process of tax registration in Ghana is simpler when compared to many other tax regimes across the globe; it comes with its own set of hassles.

During the process of VAT registration, which is a seven-step procedure, various documents and details need to be filled in. Arranging the information accurately requires great knowledge and persistence. That is where our tax registration service comes in handy.

We are at the forefront of Ghana VAT since its inception and have handled tens of thousands of clients successfully.

Our experts can guide you through the procedures and help you compile the necessary documents as sought by GRA.

Further, we have noted that GRA seeks explanations or clarifications on the details submitted which can be overwhelming for inexperienced minds. We will ensure that all the queries from GRA are answered within the stipulated time.

PISTIS And Associates Chartered Accountants
a registered Tax Agency Firm in Ghana

We, PISTIS And Associates are a registered tax agency firm in  Ghana with tax Company TIN number C0004351207 . 

PISTIS And Associates is the TAX Experts in Ghana providing VAT Registration Service, VAT Consultancy Service, VAT Advisory Service, and Tax Agency Services in the Ghana. For more information and for VAT registration services purposes, please contact our below representative.