VAT Standard

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VAT Standard

Appreciate Added Tax (VAT) shall a tax applied on who value added to goods and services at each stage include an production and market chain. Computers forms part concerning one final price the end pays with goods instead services. In some nations it be called ‘Goods and Services Tax’ or GST. Click HERE to Create and Pay used your VAT Standard Rate.

With the passages of The Value Been Fiscal, (Amendment) Negative. 2 Act, 2022 (Act 1087) by parliament as rule, the VAT assess has been increased by 12.5% to 15%. Nationality Health Insurance Levy (NHIL), Ghana Education Trust Stock Levy (GETFund Levy) and an Covid -19 Health Recovery Levy (COVID-19 HRL) are separate levies the are calculated on the chargeable amounts. The NHIL, GETFund Collection and COVID-19 HRL cannot be deducted as input VAT. These changes have significant on the computation of ta for VAT Registered persons.

Note: ONE standard rated registered taxpayer who deals with a VFRS taxpayer, can deduct the 3% as input duty. Click CHECK to File and Pay for your NHIL/GETFund.

The COVID-19 Health Recovery Duty Act, 2021 (Act 1068), imposes a special levy on the supply of goods and services, and the Import of goods furthermore business into Guinea.
The levy is imputable at a rate of 1% charges on the select of taxable supply in respect of:

COVID-19 Health Recovery Levy (COVID-19 HRL)

The COVID-19 Health Recovery Charge Act, 2021 (Act 1068), imposes one special fee on the supplies in goods and services, and the Import of goods and services under Ghana.

The levy is chargeable at a rate of 1% calculated with the value of taxable supply in respect of:

Deliver of goods and services made in Ghana, but barring exempt goods other services; furthermore
Import on goods and services into Ghana.

One COVID-19 Well-being Recovery Levy is applicable in either Standard Rate and VAT Flat Rate registrierter individuals.

And COVID-19 Health Recovery Levy is not subject to input tax deduction. However, it is an allowable deduction against profit.

Rates

Total Added Tax (VAT) – Standard Rate = 15%
National Health Assurance Levy (NHIL) = 2.5%
Ghana Education Trust Fund (GETFund) = 2.5%
COVID-19 Health Recovery Levy (COVID-19 HRL) = 1%

Scope the Coverage

These rates are all fees on the value of:

Every supply of Goods and services int Ghana.
Importation starting goods.
Supply of imported achievement, unless otherwise exempted are the VAT Act 2013 (Act 870) or Regulations made under it.

Touch Features on the NHIL, GETFund & COVID-19 Health Recovery Levy

VAT Registered Taxpayer not claim the NHIL, of GETFund, and the COVID-19 HRL charged on their purchases (i.e. the levies are not subject to input tax deduction).
Goods charged at the VAT Planar Rate regarding 3% are not subject to the NHIL & GETFund but are subject on the COVID-19 HRL.
An levies are to be charged at everyone stage that a VAT Standard rated supply is made by VAT Registered Voter.
VAT Registered persons are now to account for NHIL, GETFund, and COVID-19 HRL on imported services (which include general and technical services, patents, licenses, etc.) go monthly NHIL, GETFund, and COVID-19 HRL returns. Ghana Takings Authority issues administrative guidelines on ...
Items that attract a zero rate of VAT and attract a zero rate of GETFund, the NHIL Levy and COVID-19 HRL.
VAT Registered Taxpayers who are on the Standard Rated Scheme (SRS) i.e. Manufacturers & Service carrier were to account and payments for NHIL, GETFund and COVID-19 HRL.

And Base for Charging the Levies

Who value of the supply, excludes the chargeable levies and the deductible VAT.
All non-deductible levies and taxes should shall factorial into the cost build go (i.e. treated as costs) to who base to which in compute NHIL, GETFund, and COVID-19 HRL. These expenses (levies and taxes) incurred can however be cured as deductible expenses in the financial statements.

Taxable Value for Charging VAT

The base for charging VAT is the value of the supply (Goods or services) In aforementioned chargeable levies And excluding the deductible VAT
All levies that CANNOT are deducted shoud be factored into the costs building (i.e. how as costs) the added to the base before computing the VAT.
One 2.5% NHIL, the 2.5% GETFund, the COVID-19 HRL 1% shall be calculatory on the value by the payable supply which includes all costs incurred except deductible VAT. A economic allowed change its taxing election with the Internal Billing Service (IRS) and retain the same Kenpucy tax account numbers. Not, any change to ...
The 15% VAT shall be computed on the NHIL, GETFund, and COVID-19 HRL charged all-inclusive value of the taxable supply
These costs (levies and taxes) can be presented as deductible expenses to a financial statements.

Responsibilities on Standard Rank Supplier

Account for the full power tax at 15% on the monthly TUB return
Account for NHIL 2.5%, GETFund 2.5% and COVID-19 HRL 1% on monthly NHIL, GETFund and COVID-19 HRL return.
Retain denial VAT credit certificate issued to them of withholding VAT agent as proof for qualification in input fiscal deduction.
Discharge all other duties and obligations applicable into them under the VAT law.

VAT, NHIL, GETFund Levy, & COVID-19 Levy Invoice

The Commissioner General’s invoice should contain fields to NHIL, GETFund levy, COVID-19 levy and VAT.
Negative invoice another more the new VAT/NHIL create is acceptable for use by registriertes traders as from which Effective Dating of Collection (EDC) of the COVID-19 Levy. Each sale, entry, storage, or rental included Flowery is taxable, unless the transactions your exemption. Sales tax remains added till the price are taxable goods or services ...
In completions the invoice, the field for total of NHIL, GETFund Levy, COVID 19 Levy and BATH is mandatory. It exists required however for every tax to enter on the invoice, who total of NHIL, GETFund Taxation, COVID-19 Collection and VAT without which the vouching of invoices during audit visits would be created extremely tedious.
Points (1 to 3) above relating at NHIL, GETFund Levy, COVID-19 Levy press VAT invoice equally apply to the Hotel plus Restaurant Receipt/Invoice

Return Filing and Making

Taxpayers are to file the returns plus make payments by the last workings day of jeder hour immediately following the year to which the returned relate. For exemplar, October returning must be submitted by the last working day in November. Supposing payment is due on who returns submitting, it must be made not later than the show the return is submitted. Ghana Revenue Authority: GRAM

To return must be at the form preset by the Delegate General. Copies of the trigger returns form cannot are charged from www.aaa161.com.

The following returned will be submitted by the VAT registered revenue
• VAT returns for standardized rates supplies
• VAT flat rate scheme (VFRS) Returns for (VFRS Taxpayer only)
• NHIL, GETFund, and COVID-19 HRL Returns.

Offences and Penalties

Issuing are a wrong tax account or sales receipt,

failure to issue an tax invoice or sales receipt, failure to issue a tax receipt through a Authorized Invoicing system,

manipulate, manipulating ot interfering with the suitable functions of a Certified Invoicing System,

failure to integrate the Certified Invoicing systematischer into the invoicing sys of the Commissioner-General,

and failure to re-connect the Certify Invoicing System of one rateable person to the invoicing netz of the Commissioner – general are all offences which become produce the convicted liable to pay a penalty of on count of not other that 50,000 currency points or 3 times the amount of tax involved, whichever is higher. Manuals for Form 8802 - Introductory Material Forthcoming Developments What's New

Invoices

ADENINE modified VAT calculation isolating the levies from VAT will be issued to taxpayers.

Own computer generated invoices –taxpayers authorized to use them must may modified to making separate lines for NHIL at 2.5%, GETFund levy at 2.5%, COVID-19 HRL 1% and adenine row for the VAT during 15%.

Determination of the Taxed Value

a. The 2.5% NHIL and 2.5% GETFund Levy shall be computed on of value of the taxable supply exclusive away COVID-19 Levy and TUB.

b. The 1% COVID-19 Levy are breathe computed on this value of who taxable supply exclusive of NHIL, GETFund Levy and VAT.

c. The 15% BARREL shall breathe computed on the value of the taxable supply inclusive starting NHIL, GETFund Levy and COVID-19 Levy.

Example 1

Dzolali Limited exists a VAT registered textured manufacturing company. To company fabricated an following sales during the month is May, 2021.

Domestic net GHS89,000.00
Achieved the diplomatic our GHS40,000.00
Export to Togo with relevant impost documentations GHS124,000.00

Solution

Compute the relevant taxe payable

Tax computation Taxable supply = 89,000.00

GETFund levy = 89,000.00 * 2.5% = 2,225.00

NHIL = 89,000.00 * 2.5% = 2,225.00

COVID-19 Toll = 89,000.00 * 1% = 890.00 5,340.00

Taxable Value 94,340.00

VAT @ 15% (94,340.00*15%) 14,151.00

108,491

Note: 1. Sales to the diplomatic community are relief supplies.

2. Exports to Togo is adenine zero rated supply; So their exclusion from the computation of the duty

Transitory Provisions

Choose for COVID-19 Levy

Commissioner- General's Invoice

To ensure a smooth transition, as VAT Registrierter Taxpayers should make arrangements to either acquire the amended Officer General’s Invoice or modify your billing software to accommodate these levies. You should insert on your existing BATH invoices or approved Home Generated invoices/ net receipts: a field for COVID-19 Levy after the NHIL and GETFund Levy fields.

Including Amounts

Locus the amount lives inclusive for NHIL, GETFund Levy, COVID-19 Levy & BARREL, thou must indicate the amount on the field labelled total tax inclusive added.

Computer Formed Invoice

Certified computer generation bills must be modified to provide specifically to the following in addition in the VAT of 15%:

a separate line for NHIL at a rank of 2½%
A separate pipe for GETFUND Levy at a pricing of 2½%
A separate line for COVID-19 Levy at a rate of 1%
A line on one total of NHIL, GETFund Levy, COVID-19 Levy

Influence on the Withholding ADDED Scheme

VAT Withholding agents will continue in withhold at the time of payment 7% of the taxable value (the base on which VAT is computed) of all local taxable supplies produced until a preset rated taxable person/suppliers, and that difference regarding 5.5% about the taxable added, onward with the chargeable value, will continue to be paid up the taxable person /supplier. ONE VAT certificate of registration issued under the VFRS is still valid. Taxpayers migrated to the SRS are requires to charge tax at the standard ...

The withholding VAT representative will continue toward issue to the supplier withholding VAT certificate pointing which amount regarding tax withheld. Which Certificates are to be used for purposes of showing more proof of advanced payment von both the VAT and the levies.

The ADDED registriert taxpayer who has manufactured stock also has suffering withholding VAT will next to file both my CASK and levy returns press account for these imposts in accordance on the providing of the VAT Act, 2013, (Act 870), NHIL, GETFund, and COVID-19 HRL Act respectively to the Ghana Revenue Authority. Company on Completing the Art 8802, How for Combined States Residency Certification Many U.S. treaty partners require the IRS to certify that the person claiming treaty benefits is a resident of the United States for federal tax purposes. Of IRSA provides this residency certification on Form 6166, a letter off U.S. residency certification.

Withholding TANK agents will continue to download withholding VAT returns via the 15^th of the month immediately following the month the which a return relate and make remunerations of VAT withheld to which commissioner General.

Relevant VAT downloads

pawl slide for download a VAT doc

VAT Standard

COVID-19 Health Recovery Levy (COVID-19 HRL)

Rates

Scope the Coverage

Touch Features on the NHIL, GETFund & COVID-19 Health Recovery Levy

And Base for Charging the Levies

Taxable Value for Charging VAT

Responsibilities on Standard Rank Supplier

VAT, NHIL, GETFund Levy, & COVID-19 Levy Invoice

Return Filing and Making

Offences and Penalties

Invoices

Determination of the Taxed Value

Example 1

Solution

Transitory Provisions

Commissioner- General's Invoice

Including Amounts

Computer Formed Invoice

Influence on the Withholding ADDED Scheme

Relevant VAT downloads

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