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13.12.2010 Business & Finance

GhIS unveils VAT levy in construction industry

By GNA
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December 10, 2010 Accra, Dec. 10, GNA - The Ghana Institution of Surveyors (GhIS) on Thursday unveiled a Value Added Tax (VAT) and National Health Insurance Levy (NHIL) in the construction industry.

A press statement issued by the institution said this had become necessary because even though the amended VAT Law, (Act 629) of 2002 required that works contracts attract VAT + NHIL, "it has been largely overlooked by the parties in the construction industry in Ghana due to implementation challenges".

"Therefore, before applying the remedies for non-compliance, the Ghana Revenue Authority (GRA) thought it prudent to fine-tune the guidelines and develop the methodology including modalities and procedures for the application of VAT in the construction industry in Ghana and educate the parties in the construction industry of Ghana to apply VAT to construction as required by the amended VAT Law of 2002," it said.

The statement said the GRA through the former VAT Secretariat invited the GhIS in August, 2009 to deepen the guidelines and develop the methodology for application of VAT to construction in Ghana.

"A workshop was then held in October, 2009 to discuss with invited stakeholders the findings and approaches to the assignment. The GhIS finally completed the assignment and presented a position Paper for the operationisation of the guidelines and methodology at the 2010 Annual Quantity Surveying Divisional Seminar held from October 20 to October 23 October, 2010."

The seminar invited contractors, consultants, professionals in the built-environment, employers, clients and other stakeholders.

The statement said the GhIS intended to inform the general public and interested parties in the construction industry that beginning 2011, the GRA shall apply the necessary sanctions for the non-compliance with the application of VAT to construction in accordance with the amended VAT Law.

"In the light of the above, the Ghana Institution of Surveyors in collaboration with the Ghana Revenue Authority has scheduled a series of seminars/workshops to train contractors, consultants, clients, employers and interested stakeholders on the application of VAT to construction and we entreat all concerned stakeholders to take advantage of the opportunity to gain knowledge and familiarise themselves with the required skills," the statement said.

GNA

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