VAT Introduces e-Cash Register

The VAT Service will soon introduce an electronic cash register scheme for about 5,000 registered operators in the informal sector within the Accra and Tema metropolis this year.

Anthony Ewereko Minlah, Commissioner of VAT Service told journalists at a seminar for members of the Association of Ghana Industries (AGI), that discussions with some of the firms were currently underway to enable them understand the scheme ahead of its launch later in the year.

Operators in the informal sector currently charge a flat rate of three percent VAT.

The introduction of the electronic register will help eliminate poor record-keeping of such informal traders and as well allow the VAT service to track their transaction records.

Mr. Minlah said the Service had plans to procure registers and make them available to the operators, adding that the assistance of the Ministry of Finance was being sought to get the system in place.

He explained that enough education on the system would be carried out in order to avoid the risk of refusal of the operators to use them.

Commenting on compliance, Mr Minlah commended members of the AGI for the high voluntary compliance.

He added that a fair and efficient administration of tax was necessary to ensure voluntary compliance.

Members of AGI were taken through topics on relief on imported raw materials and pharmaceutical products.

Kwasi Gyimah-Asante, Deputy Commissioner, Operations at the VAT Service, also said his outfit would in the future consider narrowing the exemptions base and deepen the trust and confidence that currently exists between the Service and taxpayers.