The Ghana Revenue Authority (GRA) would, start charging 7% VAT Withholding Tax this year, on individuals and entities that transact business with the Ministries, Departments and Agencies (MDAs).
An Assistant Commissioner in charge of Statistics at the GRA, The Reverend Oduro Yeboah said, what we are seeking to do is that as a person is charging the 17.5 VAT on build-up cost of an item, the person is supposed to account to the GRA seven per cent VAT Withholding Tax, which is about 40 percent of the VAT.
He made this known at the closing ceremony of Chief Directors Policy Dialogue in Accra on Friday.
The United Nations Economic Commission for Africa and the Ministry of Foreign Affairs and Regional Integration jointly organised the dialogue.
It is intended to fashion out effective strategies and policies as well as build synergies to support the promotion of rapid inclusive economic growth of the country.
Making a presentation on the; Administration of International and Domestic Tax Revenue – The Perspective and Expectations of the GRA, Rev. Yeboah said the chief directors of the MDAs were supposed to withhold the amount when making payment for supply of goods and services to persons and contractors.
He added, as heads of the MDAs, you are supposed to withhold the taxes when payments are being made to individuals and entities that execute contracts and supply goods and services, and pay those revenues to the GRA within a month. Failure to do so would attract 125 percent interest on the amount.
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