The Ghana Revenue Authority (GRA) will begin enforcing the Physical and Electronic Devices Act this year as part of efforts to strengthen Value Added Tax (VAT) administration and improve compliance nationwide.
Mr Anthony Kwasi Sarpong, Commissioner-General of the GRA, announced the move at the closing session of a three-day management retreat of the Domestic Tax Revenue Division (DTRD) in Sunyani.
The retreat, held under the theme “Transforming for Impact and Growth: Focusing on VAT Performance and Compliance,” reviewed strategies to enhance revenue mobilisation through improved VAT systems.
Mr Sarpong explained that enforcement of the Act would allow the Authority to deploy physical monitoring devices at retail outlets across the country. The devices are expected to support ongoing reforms aimed at automating VAT collection and reducing revenue leakages.
According to him, the automation drive began in 2025, following the passage of a new VAT law that laid the legal foundation for digital monitoring and enhanced oversight of transactions.
He noted that the legal reforms would empower the GRA to track transactions in real time, enhance transparency and significantly improve VAT performance.
Mr Sarpong disclosed that the current VAT performance stood at approximately 40 percent, leaving an estimated compliance gap of 60 percent. In practical terms, he said, only about 40 out of every 100 potential VAT transactions were being captured.
He described the situation as unsatisfactory and stressed the need for urgent corrective measures. “We are determined to change that so that VAT becomes a key anchor in our national revenue mobilisation,” he stated.
The Commissioner-General emphasised that businesses remained crucial partners in the tax system and urged them to cooperate fully with the Authority as the reforms are implemented.
He called on taxpayers to honour their VAT obligations and support the automation initiative to help generate the revenue required for Ghana’s progressive and sustainable development.
Mr Sarpong expressed optimism that with renewed commitment, professionalism and teamwork among GRA staff, the Authority would meet its tax targets.
He added that government had provided the necessary tools and opportunities for personnel to deliver on their mandate and encouraged them to work diligently and with a strong sense of responsibility.
The enforcement of the Physical and Electronic Devices Act is expected to mark a major step in modernising Ghana’s VAT administration and closing longstanding compliance gaps in the domestic tax system.
