The Ghana Revenue Authority (GRA) has intensified its enforcement operations across Accra, warning businesses against the selective issuance of Value Added Tax (VAT) receipts and other practices that undermine tax compliance and government revenue mobilisation.
Mr. Joseph Adjeikwei Annan, Assistant Commissioner in charge of Accra Area Enforcement at the GRA, said recent inspections had uncovered several businesses engaging in irregular tax practices, including the failure to issue VAT receipts for all transactions and poor record-keeping.
Speaking during a tax compliance and enforcement exercise, Mr. Annan stressed that the Authority would continue monitoring businesses to ensure adherence to VAT regulations and other tax obligations.
“The selective issuance of VAT receipts affects compliance and revenue collection. Businesses are required to issue receipts for every taxable transaction and maintain proper records as stipulated by law,” he said.
As part of the operation, GRA officials visited Strong Machine Company Limited on Spintex Road, where records and equipment were seized for further examination over suspected tax irregularities.
The enforcement team also inspected Bayu Villa Restaurant at Airport Residential Area and discovered that receipts and invoices were allegedly being issued in Chinese rather than English.
Mr. Annan explained that under the Revenue Administration Act, all official business documents, including invoices and receipts, must be maintained in English to facilitate verification by tax officials.
He noted that no business operating in Ghana had been granted permission to issue official tax records in a foreign language and urged companies to comply fully with the country’s tax regulations.
“Records and invoices must be available in English. This is a legal requirement that enables tax officers to properly verify transactions and assess tax obligations,” he stated.
The compliance exercise extended to Nyankonton Building Materials and Hardware Enterprise at Oyarifa, a dealer in nails and iron rods, where inspectors reportedly found no business records during their visit.
According to Mr. Annan, the premises were subsequently sealed, while a Chinese representative of the company was arrested to assist ongoing investigations into the matter.
However, not all businesses inspected were found wanting.
At Stone Depot, a marble dealership also located at Oyarifa, officials verified that the company was compliant with the Electronic VAT (E-VAT) system after confirming receipts generated through its digital platform.
Mr. Annan described the E-VAT system as a critical tool in strengthening tax administration by enabling authorities to monitor sales transactions and improve compliance levels.
He encouraged businesses that had not yet integrated the system into their operations to do so promptly.
The Assistant Commissioner said the Authority would continue conducting audits and pre-emptive assessments to determine whether some businesses had underdeclared taxes or failed to meet their statutory obligations.
He added that the introduction of E-VAT would not eliminate the need for physical inspections, as some businesses could still operate unregistered points of sale outside the digital system.
“Physical monitoring remains necessary to ensure businesses are not bypassing the system and to verify the accuracy of information being reported,” he explained.
Mr. Annan reiterated that improving VAT compliance remained one of the Authority’s key priorities because of its direct impact on overall tax collection.
“All this is to help improve VAT compliance because once VAT compliance improves, the other taxes also tend to fall into place,” he said.
The latest enforcement exercise forms part of the GRA’s broader efforts to strengthen tax administration, widen the tax net and enhance domestic revenue mobilisation to support national development.
