FOURTH REPUBLIC
Value Added Tax Act, 2013
ARRANGEMENT OF SECTIONS
Section
Imposition of tax
1.Imposition
of tax
2.Persons
liable to pay tax
3.Rate
of the tax
Taxable person and taxable activity
4.Taxable
person
5.Taxable
activity
Registration
6.Registration
requirement
7.Period
for becoming a taxable person
8.Notice
of registration
9.Certificate
of registration
10.Notice
of cancellation in. respect of turnover
11.Exceptions
regarding thresholds
12.Designation
of taxable person in respect of groups and distinct
divisions
13.Application
for voluntary registration
14.Compulsory
registration
15.Sanctions
for failure to register
16.Unregistered,
non-resident persons who provide telecommunication
services or electronic commerce
17.Register
and particulars of taxable persons
18.Notice
of change in business
19.Cancellation
of registration
Supply of goods and services
20.Supply
of goods or services
21.Repossession
of goods as supply of goods
22.Lay-away
agreement and betting as supply of services
23.Separate
supply
24.Activities
that do not constitute supply of goods or services
25.Effect
of denial of input tax
26.Payment
of deposit and receipt of claim as supply of goods
or
services
27 Supply of power and others as supply of goods
28 Disposition of taxable activity
29 Phone cards and prepayment as supply of services
30.Regulations
to prescribe for the supply of goods and supply of
services
31.Mixed
supplies
32.Supply
by agent or auctioneer
Taxable supplies
33.Taxable
supply
34.Payment
of tax on importation of goods or services
35.Exempt
supply
36.Zero-rated
supply
37.Exempt
import
Relief supply
Time and place of supply, tax invoice, and sales
receipt
39.Time
of supply
40.Time
of import
41.Issue
of tax invoice or sales receipt
42.Place
of supply
Taxable value
43.Value
of taxable supply
44.Taxable
value for determining the tax on imported goods and
services
45.Adjustments
46.Adjustments
on account of bad debts
Calculation of tax payable and refunds
47.Tax
payable for tax period
48.Deductible
input tax
49.Deductible
input tax for mixed taxable and exempt supply
50.Refund
or credit for excess tax paid
51.Time
for payment of refund
Tax return, records and assessment
52.Submission
of tax return and date of payment of the tax
53.Payment
of tax on import of services
54.Assessment
of the tax and correction of return
Recovery of tax due, interest and other liabilities
55.Recovery
of tax due
56.Recovery
from recipient of a supply
57.Value
Added Tax Refund Account
58.Failure
to issue tax invoice
59.Evasion
of tax payment
60.Power
to seal off premises
Miscellaneous provisions
61.Tax-inclusive
pricing
62.Declaration
of representative
63.Person
acting in a representative capacity
64.Regulations
65.Interpretation
66.Repeal,
revocation, savings and transitional provisions
SCHEDULES
FIRST SCHEDULE
Exempt supplies
SECOND SCHEDULE
Zero -rated supplies
THIRD SCHEDULE
Exemption for relief supplies
FOURTH SCHEDULE
Tax credit note and tax debit note
FIFTH SCHEDULE
Apportionment of input tax
SIXTH SCHEDULE
Transitional provisions
THE EIGHT HUNDRED AND SEVENTIETH
ACT
o THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
VALUE ADDED TAX ACT, 2013 (ACT 870)
AN ACT to revise and consolidate the law relating to
the imposition of the value added tax and to provide
for related matters.
DATE OF ASSENT: 30th December, 2013.
Passed by Parliament and assented to by the
President:
Imposition of tax
Imposition of tax
1. (1) There is imposed by this Act a tax to be
known as the value added tax which is to be charged
on the
(a)
supply of goods or services made in the country
other than exempt goods or services; and
(b)
import of goods or import of services other than
exempt import.
(2) Unless otherwise provided in this Act, the tax
is charged on the supply of goods or services where
the supply is
(a)
a taxable supply; and
(b)
made by a taxable person in the course of the
taxable activity of that person.
(3) The tax is chargeable and payable on the
importation of goods and for that purpose, the laws
and regulations applicable to collection of customs
duties and other taxes on imports of goods,
including the sub- mission of an import declaration
apply with the modifications specified in this Act
and the Regulations.
(4) The tax is chargeable on the value of a supply
of goods by
(a)
a diplomatic mission,
(b)
international agency,
(c)
an organisation,
(d)
a government agency, or
(e)
other person
who has obtained a relief from or a refund from the
tax on the importation or domestic acquisition of
the goods.
Persons liable to pay tax
2. (1) Except as otherwise provided in this Act, the
tax shall be paid
(a)
in the case of a taxable supply, by the taxable
person making the supply;
(b)
in the case of an import of goods, by the importer;
or
(c)
in the case of an import of services, by the
recipient of the service.
(2) In the case of a non-resident person required to
register under section 16, the non-resident is
liable for the payment of the tax.
Rate of the tax
3. Except as otherwise provided in this Act, the
rate of the tax is fifteen percent and is calculated
on the value of the taxable supply of the goods or
services or on the value of the import.
Taxable person and taxable activity
Taxable person
4. (l) A taxable person is a person who is
registered for purposes of this Act or is required
to register under section 6 to 16.
(2) Subject to sections 6 to 8 and 10 to 16, the
effective date of registration of a person as a
taxable person is the date specified in the
certificate of registration issued by the
Commissioner-General under section 9.
Taxable activity
5.
(1) For the purposes of this Act, a "taxable
activity" means an activity which is carried on by a
person
(a)
in the country, or
(b)
partly in the country,
whether or not for a pecuniary profit, that involves
or is intended to involve, in whole or in part, the
supply of goods or services to another person for
consideration.
(2) Without limiting subsection (1), a taxable
activity includes
(a)
an activity of a local authority or unincorporated
association or body that involves, in whole or in
part, the supply of goods or services to another
person for consideration;
(b)
the processing of data or supply of information or
similar service;
(c)
the supply of staff;
(d)
the acceptance ofa wager or stake in any form of
betting or
gaming, including lotteries and gaming machines;
(e) the making of gifts or loans of goods;
(f)
the leasing or letting of goods on hire;
(g)
the appropriation of goods or services for personal
use or consumption by the taxable person or by any
other person;
(h)
the sale, transfer, assignment or licensing of
patents, copy- rights, trademarks, computer software
and other proprietary information; and
(i)
the export of non-traditional products.
(3) A supply is considered to be a supply for
consideration where the supplier is directly or
indirectly entitled to receive payment wholly or
partly in money or in kind from the person to whom
the supply is made or from any other person, and
includes
(a)
a supply made between related persons for no
consideration;
(b)
a supply of goods for use only as trade samples; or
(c)
a supply referred to in section 21 to 23.
(4) A supply is part of a taxable activity of a
person if the supply is.made by person as part of or
incidental to any economic activity the person
conducts.
(5) Where an owner of goods enters into a contract
with another person to process or treat the goods of
the owner, the delivery of the goods to the owner or
the agent of the owner shall be treated as a supply
of goods by the person processing or treating the
goods.
Registration
Registration requirement
6.
(1) Except as otherwise provided in this Act, a
person who is engaged in a taxable activity and is
not registered for tax purposes shall register if
(a)
at the end of any period of twelve or less months,
the person made, during that period, taxable
supplies exceeding one hundred and twenty thousand
Ghana Cedis; or
(b)
at the end of any month, there are reasonable
grounds to expect that that person will make taxable
supplies in the next twelve or less months exceeding
one hundred and twenty thousand Ghana Cedis.
(2) Despite subsection (1), a person shall register
if
(a)
at the end of any period of three months, the person
made, during that period, taxable supplies exceeding
thirty thousand Ghana Cedis; and
(b)
there are reasonable grounds to expect that the
total value of taxable supplies made by that person
during that period and to be made during the next
consecutive nine months will exceed one hundred and
twenty thousand Ghana Cedis.
(3) For the purpose of determining the thresholds
under subsections (1) and (2), the
Commissioner-General may have regard to the value of
taxable supplies made by another person, if that
other person is a related person or the taxable
person and that other person are acting in concert
in making the taxable supplies.
(4) A person who is required to register under this
Act shall apply for Value Added Tax registration in
the form and manner prescribed by the
Commissioner-General.
(S) A person required to register under subsection
(1) shall file the application for registration
within thirty days after the end of
(a)
the period under paragraph (a) of subsection
(1); or
(b)
the month under paragraph (b) of subsection
(1).
(6) A person required to register under paragraph
(a) of subsection (2) shall file the application for
registration within thirty days after the
three-month period.
Period for becoming a taxable person
7. A person who is not registered, but who is
required to apply for registration under this Act,
is a taxable person from the beginning of the tax
period immediately following the tax period in which
the duty to apply for registration arose.
Notice
of registration
8.
(1) Subject to subsection (2) the
Commissioner-General shall, within thirty days after
the receipt of an application for registration under
this section, give notice to the applicant for
registration of the decision to register or not to
register the person.
(2) Where the Commissioner-General fails to serve
notice, the Commissioner-General is deemed to have
made a decision to register the applicant except
where the Commissioner-General is satisfied that the
person is not eligible to apply for registration.
(3) For the purposes of this section, where within
thirty days specified under subsection (I) the
Commissioner-General requests additional information
from the applicant in order to determine if the
applicant is eligible to apply for registration, the
thirty-day period shall be suspended and the
Commissioner-General shall have not less than
fourteen days
after the Commissioner-General receives the required
information in the form prescribed by the
Commissioner-General to give the notice under
subsection (1).
Certificate of registration
9. (I) The Commissioner-General shall issue to each
person registered for Value Added Tax, a certificate
of registration.
(2) A registered person shall exhibit the
certificate of registration
(a)
at the principal place of business of the person;
and
(b)
at every other location at which the person engages
in a taxable activity.
Notice of cancellation in respect of turnover
10.
The Commissioner-General may, in writing, notify a
person that that person has within the time
specified in the notice, made taxable supplies
(a)
in excess of a turnover threshold; or
(b)
below the turnover threshold,
specified in subsection (1) or (2) of section 6 and
is registrable as a taxable person or not
registrable and the Commissioner-General shall act
accordingly by registering or cancelling the
registration of the person.
Exceptions regarding thresholds
11.
(1) Despite the threshold rules in section 6
(a) a promoter of public entertainment,
(b)
an auctioneer, or
(c)
a national, regional, local or other authority or
body, which carries on any taxable activity shall
apply for registration.
(2) For the purposes of subsection (1),
(a)
the national, regional, local or other authority or
body shall apply for registration within thirty days
after the date the national, regional, local or
other authority or body commences a taxable
activity;
(b)
an auctioneer shall apply for registration within
thirty days after the date on which that person
becomes an auctioneer; or
(c)
a promoter of public entertainment, shall apply for
registration at least forty-eight hours before the
commencement of the public entertainment if, within
any period of twelve or less months that includes
the date of the public entertainment to which the
application relates, the total value of taxable
supplies of the promoter or the licensee or
proprietor is reasonably expected to exceed ten
thousand Ghana Cedis.
Designation
of taxable persons in respect of groups and
distinct divisions
12. (1) A group of taxable persons may, with the
approval of the Commissioner-General, be treated for
the purposes of the tax as one designated taxable
person.
(2) Each member of the group referred to in
subsection (1) shall be jointly and severally liable
for any liability or contravention under this Act
and the Regulations.
(3) A taxable person whose taxable activity is
structured into distinct divisions may apply to the
Commissioner-General to register one or more of its
divisions for the tax.
Application for voluntary registration
13.
(1) A person who is not required to be registered
may apply voluntarily to be registered by the
Commissioner-General.
(2) The Commissioner-General shall not register a
person who applies to register under subsection (1)
as a taxable person, if the Commissioner -General
(a)
is satisfied that the person has no fixed place of
abode or business;
(b)
has reasonable ground to believe that that person
may not
(i) keep proper accounting records related to any
business activity carried on by that person;
(ii) submit regular and reliable tax returns as
required by or under this Act; or .
(iii) is not a fit and proper person to be
registered.
Compulsory registration
14.
Where a person required to register under this Act
fails to apply for registration, the
Commissioner-General shall register that person.
Sanctions for failure to register
15.
A person who fails to apply for registration is
liable to a penalty of not more than two times the
amount of tax on taxable supplies payable from the
time the person is required to apply for
registration until the person files an application
for registration with the Commissioner-General.
Unregistered, non-resident persons who provide
telecommunication
services or electronic commerce
16.
(1) An unregistered, non-resident person who provide
telecommunication services or electronic commerce to
persons for use or enjoyment in the country, other
than through a Value Added Tax registered agent must
register if that person makes taxable supplies
exceeding the threshold under subsection (1) or (2)
of section 6.
(2) For the purposes of subsection (1),
(a)
"electronic commerce" covers business transactions
that take place through the electronic transmission
of data over communications networks like the
internet; and
(b)
"supply of telecommunication services and electronic
commerce" include
(i) website supply;
(ii) web-hosting;
(iii) distance maintenance of programmes and
equipment;
(iv) images, text and information and making
databases available;
(v) music and games, games of chance and gambling
games;
(vi) political, cultural artistic, sporting,
scientific and entertainment broadcasts and events;
and
(vii) distance teaching.
(a)
"telecommunications services" are services that
relate to the transmission, emission or reception of
signals, writing, images and sounds of information
of any nature by wire,
radio, optical or other electromagnetic systems,
including the provision of access, transmission,
emission or reception;
Register and particulars of taxable persons
17.
The Commissioner-General shall keep a register of
taxable persons that has the particulars of those
persons as specified by the Commissioner-General.
Notice of change in business
18.
(1) A taxable person is required to give notice to
the Commissioner -General in writing
(a)
if that person
(i) ceases to operate;
(ii) sells, or
(iii) relocates
the business engaged in the taxable activity;
(b)
if there is change in the ownership of the business
engaged in the taxable activity; or
(c)
of a change
(i) in the name or address of that person;
(ii) in the circumstances which disqualify that
person for registration; or
(iii) in the taxable activity or in the nature of
taxable. supplies being made.
(2) The notice shall be given within fourteen
calendar days after the cessation, sale, relocation,
change of ownership or any other change as the case
may be.
(3) Where a person ceases to carry on a taxable
activity in relation to which the registration was
made, the notice shall be made within four- teen
calendar days after the date of the cessation and
shall state whether or not that person intends to
carry on the taxable activity within twelve months
from that date.
(4) A taxable person who commences the sale of a
business as a going concern shall give notice in
writing to the Commissioner-General of that fact at
least fourteen calendar days before the
(a)
sale closes,
(b)
purchaser acquires any legal interest in the assets
to be acquired, or
(c)
assets of the going concern are transferred,
whichever date is earliest.
Cancellation of registration
19.
(1) The Commissioner-General shall cancel the
registration of a taxable person where the
Commissioner-General is satisfied that the tax- able
person
(a)
no longer exists;
(b)
is not carrying on a taxable activity;
(c)
is not required or entitled to apply for
registration;
(d)
has no fixed-place of business or abode;
(e)
has no! kept proper accounting records related to a
business activity carried on by that person; or
(f)
has not submitted regular and reliable tax returns
required under this Act.
(2) A cancellation takes effect from the end of the
tax period in which the registration is cancelled,
or from any other date determined by the
Commissioner-General.
(3) Subject to subsection (4), a taxable person
whose registration is cancelled is regarded as
having made a taxable supply of the goods on hand,
including capital goods, at the time the
registration is cancelled.
(4) For the purposes of subsection (3), there is no
taxable supply with respect to specific goods on
hand if the taxable person was denied an input tax
deduction on the acquisition of those goods.
(5) The obligations and liabilities of a person
under this Act and the Regulations, including the
submission of returns required under section 52 in
respect of anything done or omitted to be done by
that person as a taxable person, is not affected by
the cancellation of the person's registration.
(6) The Commissioner-General shall serve notice in
writing on a person of the decision to cancel or
refuse to cancel a registration under this section
within thirty days
(a)
after making the decision; or
(b)
after receipt of the application.
(7) Where registration is cancelled, the person
shall return to the Commissioner-General, the Value
Added Tax certificate and any unused Value Added Tax
invoices, and the Commissioner-General shall remove
the personal particulars of that person from the
register.
(8) A person registered for Value Added Tax pursuant
to section 13(1) may apply for cancellation of the
registration only after the expiration of two years
after the date the registration took effect.
(9) Subject to subsection (8), a taxable person who
ceases to carry on the business in relation to which
the registration was made and who is not engaged in
any other taxable activity, shall apply in writing
to the Commissioner-General for cancellation of the
registration within thirty days after the cessation
of the business. .
Supply of goods or services
Supply of goods or services
20.
(1) Except as otherwise provided in this Act and the
Regulations,
(a)
"supply of goods" means an arrangement under which
the owner of goods parts with possession of the
goods, by way of sale, barter, lease, transfer,
exchange, gift or similar
disposition; and
(b)
"supply of services" means a supply which is not a
supply of goods or money, and in the nature of
(i) the performance of services for another person;
(ii) the making available of a facility or
advantage; or
(iii) tolerating a situation or refraining from
doing an activity.
(2) For purposes of subsection (1) (a),
supply of goods does not include the supply of
money.
(3) The disposal of
(a)
a taxable activity, or
(b)
part of a taxable activity that is capable of being
operated separately as a going concern, is a supply
of goods made in the course or furtherance of the
taxable
activity.
(4) For the purposes of subsection (3) a taxable
activity or part of a taxable activity that is
capable of being operated separately is disposed of
as a going concern where
(a)
the goods or services necessary for the continued
operation of that taxable activity or that part of
the taxable activity are supplied to the transferee;
and ~
(b)
the transferor carries on or is carrying on, that
taxable activity or that part of a taxable activity
up to the time of its transfer to the transferee.
(5) A supply of goods for goods or services is a
supply of goods.
(6) A supply of services for services or goods is a
supply of services.
(7) Subject to sections 24 (2) and 25, the
application by a taxable person of goods or services
acquired for use in a taxable activity to a
different use which includes the provision of goods
or services to an employee for personal use, is a
supply of those goods or services by the taxable
person in the course or furtherance of that taxable
activity.
~J?ecial sUJ?J?I)l
Repossession of goods as supply of goods
21.
Where goods are repossessed under a credit
agreement, the repossession is a supply of the goods
by the debtor under the credit agreement to the
person exercising the right of repossession and,
where the debtor is a registered person, the supply
is made in the course or furtherance of the taxable
activity of the debtor, unless the goods did not
form part of the assets held or used by the debtor
in connection with that taxable activity.
Lay-away agreement
and betting as supply of services
22.
(1) Where a lay-away agreement is terminated or
cancelled and the seller retains an amount paid by
the purchaser or recovers an amount the purchaser
owes under the agreement, the cancellation or
termination 'is a supply of services by the seller
in respect of the agreement.
(2) The placing of a bet by a person with another
person operating a game of chance is a supply of
services by that other person operating the game of
chance to the person.
Separate supply
23.
Where a supply of goods or services consists of both
a supply that is charged with tax at a positive rate
and .
(a)
a supply of goods with tax at a zero rate; or
(b)
an exempt supply
each part of the supply of goods or services is
treated as a separate supply of goods or services if
each part is reasonably capable of being supplied
separately.
Activities that do not constitute supply of goods or
services
24.
(1) A supply of services by an employee to an
employer by reason of the employment of that
employee is not a supply of services for Value Added
Tax purposes.
(2) The transfer of goods to a person acting in a
representative capacity to the transferor is not a
supply of goods.
Effect of denial of input tax
25.
Except otherwise provided in this Act, where a
taxable person supplies goods or services and a
deduction for input tax paid on the acquisition of
the goods or services was denied, the supply of the
goods or services by the taxable person is a supply
of goods or services other than in the course or
furtherance of a taxable activity.
Payment of deposit and receipt of claim as supply of
goods or services
26.
(1) The payment ofa sum of money as a deposit, other
than on a returnable container, is treated as a
supply when the deposit is forfeited.
(2) For the purposes of section 20 to 26, a deposit
is an amount of money -or property received from a
prospective purchaser to secure performance of the
agreement that is the subject of the deposit, to be
applied to the purchase price or returned if the
depositor performs and ordinarily, is forfeited if
the purchaser defaults.
(3) Where a taxable person receives a payment of a
claim or is otherwise indemnified under a non-life
insurance contract for a loss incurred in connection
with the conduct of a taxable activity, the receipt
of the payment or indemnity is a supply of services
by the taxable person in the course or furtherance
of a taxable activity, but only if the supply of
that non-life insurance contract was taxable under
section 1, other than a supply charged to the tax at
a zero rate under section 36.
Supply of power and others as supply of goods
27.
The supply of any form of power heat, refrigeration
or ventilation is a supply of goods.
Disposition
of taxable
activity
28.
(1) Subject to subsection (2) where
(a)
the supply was charged with tax at the rate of zero
percent in terms of the Second Schedule; and
(b)
the goods and services comprising the taxable
activity were acquired by the recipient wholly or
partly for a purpose other than for consumption,
use, or supply in the course of making taxable
supplies,
the acquisition of the taxable activity is a supply
by the recipient in the course or furtherance of a
taxable activity carried on by the recipient to the
extent that the goods and services comprising use or
supply in the course of making taxable supplies.
(2) Subsection (1) does not apply where that part of
the taxable activity referred to in paragraph (b) of
subsection (1) is less than ten percent of the total
taxable activity acquired.
Phone cards and prepayment as supply of services
29.
The issuance of a phone card, prepayment on a
cellular phone or similar scheme of advance payment
for the supply of goods or the rendering of services
is a supply of services for Value Added Tax
purposes.
Regulations to prescribe for the supply of goods and
supply of services
30.
(1) For the purposes of section 20 to 29, the
Minister may, by legislative instrument, make
Regulations to prescribe rules to determine whether
a transaction constitutes
(a)
a supply of goods; or
(b)
a supply of services.
(2) Subject to subsection (29), where a right to
receive goods or services for a monetary value
stated on a token, voucher, gift certificate, or
stamp, other than a postage stamp authorised under
the Postal and Courier Services Regulatory
Commission Act, 2003 (Act 649) is granted for a
consideration in money, the issue of the token,
voucher, gift certificate, or stamp is not a supply,
except to the extent, if any, that the consideration
exceeds that monetary value. .
(3) The issuance of a phone card, prepayment on a
cellular phone, or a similar scheme of advance
payment for the supply of goods or the rendering of
services is a supply for Value Added Tax purposes.
Mixed supplies
31.
(1) A supply of
(a)
services incidental to a supply of goods is part of
the supply of goods;
(b)
goods incidental to a supply of services is part of
the supply of services; and
(c)
services incidental to an import of goods is part of
the import of the goods.
(2) Despite paragraphs (a) and (c) of
subsection (1), a supply of real property does not
include the supply of services incidental to that
supply or the import of services incidental to that
supply.
Supply by agent or auctioneer
32.
(1) A supply of goods or services made by a person
as an agent for another person who is the principal
is a supply by the principal.
(2) Subsection (1), does not apply to the supply of
services of an agent as agent to the principal.
(3) A supply of goods by auction is for the purposes
of this Act treated as a supply of goods by the
auctioneer for consideration in the course or
furtherance of a taxable activity carried on by the
auctioneer.
Taxable supplies
Taxable supply
33.
Except as otherwise provided in this Act or the
Regulations, a taxable supply is a supply of goods
or services made by a taxable person for
consideration, other than an exempt supply, in the
course of, or as part of taxable activity carried on
by that taxable person.
Taxable import
34. (1) Except as otherwise provided in this Act the
Regulations under this Act,
(a)
on the import of goods,
(i) the Commissioner-General shall make arrangements
to collect, at the time of import, tax due under
this Act; and
(ii) the Customs, Excise and Preventive Service
(Management) Act, 1993 (P.N.D.C. Law 330), relating
to the import, transit, coastwise carriage,
clearance of goods, and payment and recovery of duty
applies, so far as is relevant, to the tax charged
under this Act or the Regulations, with the
exceptions, modifications, and adaptations that the
Minister may by Regulations prescribe; and
(b)
on the import of services, tax is payable as
provided under section 57.
(2) The Commissioner-General shall make arrangements
for the collection of tax in relation to an import
of goods through the postal services.
Exempt supply
35. (1) The supply of goods and services specified
in the First Schedule is an exempt supply and not
subject to the tax.
(2) A supply of goods or services is not an exempt
supply if that supply is subject to tax at the rate
of zero percent under section 16.
Zero-rate d supply
36. (1) A taxable supply is taxable at a zero rate
if the supply is specified in the Second Schedule.
(2) Where a taxable person has applied the rate of
zero percent to a supply under this section, the
taxable person is required to obtain and retain the
documentary proof that is acceptable to the
Commissioner- General and that substantiates the
person's entitlement to apply the zero rate to the
supply.
Exempt
import
37. An import of goods is an exempt import if the
goods are exempt under the First Schedule or
classified as an exempt import in conformity with
the Customs Tariff Schedule also known as the
"Harmonised System".
Relief supply
38. (1) The Minister may, by legislative instrument,
make Regulations to grant relief from tax on taxable
imports of goods or taxable supplies of goods
acquired in the country to the persons specified in
the Third Schedule.
(2) For the purposes of subsection (1), the Minister
shall specify the method by which the persons
entitled to relief shall obtain that relief, subject
to restrictions that the Minister considers fit.
(3) When the relief provided for under this section
is by refund, a claim for a refund of tax shall be
made in the form and at the time that the Minister
may prescribe, and shall be accompanied by proof of
payment of tax.
(4) For the purposes of subsection (1), the relief
does not apply to raw materials, parts and services
that are or may become components of the goods in
respect of which relief is granted.
(5) Subsection (4) does not apply in the case of
relief granted under item 7 of the Third Schedule.
Time and place of supply, tax invoice, and sales
receipt
Time of supply
39. (1) Except as otherwise provided in this Act or
Regulations, a sup- ply of goods or services occurs,
(a)
where the goods or services are applied to own use,
on the date on which the goods or services are first
applied to own use;
(b)
where the goods or services are supplied by way of
gift, on the date on which ownership in the goods
passes or the performance of the services is
completed;
(c)
in any other case, the earliest of the dates on
which
(i) the goods are removed from the premises of the
taxable person, or from other premises where the
goods are under the taxable person's control;
(ii) the goods are made available to the person to
whom they are supplied;
iii) the performance of services is completed;
(iv) receipt of payment is made; or
(v) a tax invoice or sales receipt is issued.
(2) Where under subparagraphs (iv) and (v) of
paragraph (c) of subsection (1), payment is
received or a tax invoice or sales receipt is issued
for part of the supply, this section applies only to
the part of the supply represented by the payment or
the tax invoice.
(3) Where metered supplies are made on a continuous
basis, the time of supply is at each meter reading.
(4) The supply of goods under a hire purchase
agreement or finance lease occurs on the date the
goods are made available under the agreement or
lease.
(5) Where
(a)
goods are supplied under a rental agreement, or
(b)
goods or services are supplied under an agreement or
law which provides for periodic payments,
the goods or services shall be considered as
successively supplied for successive parts of the
period of the agreement or as determined by that law
and each successive supply occurs on the date on
which payment is due or received, or that the
invoice is issued, whichever date is earlier.
(6) For the purposes of this section, where two or
more payments are made or are to be made for a
supply of goods or services, other than a supply to
which subsection (4) or (5) applies, each payment
shall be regarded as made for a separate supply to
the extent of the amount of the payment on the
earlier of the dates that the payment is due or
received.
(7) In this section, the term "rental
agreement" means any agreement for the letting of
goods other than a hire purchase agreement or
finance lease.
(8) Where the supply of goods or services is
incidental to another supply, the time of supply of
the incidental supply shall be considered to be the
same as the time of supply for the main goods or
services.
(9) A supply of goods in accordance with a lay-away
agreement occurs when the goods are delivered to the
purchaser.
(10) A supply of goods that have been repossessed
under section 21 occurs
(a)
when the goods are repossessed; or
(b)
where the debtor may under a law be reinstated with
that debtor's rights and obligations under the
credit agreement, the day after the last day of any
period during which the debtor may under that law be
so reinstated.
(11) A supply of goods made through a coin-operated
machine occurs when the supplier withdraws the
consideration from the coin- operated machine.
(12) The forfeit of a deposit, other than on a
returnable container, occurs when the deposit is
forfeited.
(13) To the extent that the issuance of a token,
voucher, gift certificate, or stamp referred to in
section 30(2) is a supply, the supply occurs when
the token, voucher, gift certificate, or stamp is
issued.
(14) The Minister may, by legislative instrument,
make Regulations to prescribe rules to determine the
time of a supply of particular goods or services.
Time of import
40.
(1) An import of goods occurs when the goods are
entered for purposes of the Customs, Excise and
Preventive Service (Management) Act, 1993
(p.N.D.C.L. 330).
(2) An import of services occurs at the time
determined by the application of section 19 to the
import on the basis that the import is a supply of
services.
Issue of tax invoice or sales receipt
41.
(1) A taxable person shall, on making a taxable
supply of goods or services, issue to the recipient,
a tax invoice in the form and with the details that
are prescribed by the Commissioner-General.
(2) A taxable person on issuing a tax invoice shall
retain a copy of the invoice in a sequential
identifying number order.
(3) The Commissioner-General may authorise a taxable
person who makes a taxable supply to issue a sales
receipt instead of a. tax invoice in accordance with
the conditions and procedures specified in
Regulations made under this Act.
(4) A person shall not provide a tax invoice or
sales receipt in circumstances other than those
specified under this section.
(5) Subject to subsection (8), a taxable person
shall issue only one tax invoice or sales receipt
for each-taxable supply,
(6) Where, within thirty calendar days after the
date of a supply, a recipient who is a taxable
person has not received a tax invoice as required
under subsection (1), the recipient may request the
supplier, in writing, to provide a tax invoice in
respect of the taxable supply.
(7) When a request is made under subsection (6), the
supplier shall comply with the request within
fourteen calendar days after its receipt.
(8) Where, within thirty calendar days after the
date of a supply, a recipient who is a taxable
person claims to have lost the original tax invoice
for a taxable supply, the taxable person making the
supply shall, on receipt of a request in writing
from the recipient, provide a certified copy clearly
marked "copy" to the recipient within fourteen
calendar days of receipt after the request.
(9) A person who
(a)
issues a false tax invoice or sales receipt,
(b)
uses a false taxpayer identification number, or
(c)
fails to issue a tax invoice or sales receipt as
required under subsection (1) or (3),
is in addition to the penalty provided in section 58
liable to pay a penalty of an amount not more than
five hundred currency points or three times the
amount of tax involved, whichever is higher.
Place of supply
42.
(1) Except as otherwise provided in this Act, the
place of supply of goods is the place where the
goods are delivered or made available by the
supplier or, if the delivery or making available of
the goods involves the goods being transported, the
place where the goods are when the transportation
commences,
(2) A supply of thermal or electrical energy,
heating, gas, refrigeration, air conditioning, or
water takes place where the supply is received.
(3) Subject to this section and Regulations, a
supply of services takes place at the location of
the place of business of the supplier from which the
services are supplied.
(4) The supply of the following services takes
place where the recipient uses the service,
including:
(a)
a transfer or assignment of a copyright, patent,
licence, trademark, or similar right;
(b)
the service of a consultant, engineer, lawyer,
architect, accountant or other professionals;
(c)
the processing of data or supplying information, or
any similar service;
(d)
an advertising service;
(e)
the obligation to refrain from pursuing or
exercising taxable activity, employment, or a right
described in this subsection;
(f)
the supply of personnel;
(g)
the service of an agent in procuring for the agent's
principal a service described in this subsection; or
(h)
the leasing of tangible personal property other than
trans- port property.
(5) Unless the service is described in subsection
(4),
(a)
the supply of cultural, artistic, sporting,
educational, or similar activities takes place where
the service is physically carried out; and
(b)
the supply of services connected with tangible
personal property takes place where the service is
physically carried out.
(6) Unless the service is described in subsection
(4), the supply of services connected with real
property takes place where the property is located.
(7) Unless the service is described in subsection
(4), a supply of services incidental to transport
takes place where the transportation occurs.
(8) Services supplied from a place of business in
the country which would be treated as supplied
outside the country under subsections (4) to (7) are
considered as exported from the country.
(9) The place of supply of a right to services is
the same as the place for the supply of the services
made by the supplier of the right to the recipient
of the right whether or not the right is exercised.
(10) For the purposes of subsection (9), a right to
services includes any right, option or priority with
respect to the supply of services and an interest
derived from a right to services.
(11) In the case of telecommunications service
described in section 16 (2) (a), the place of supply
is the place where the facility or instrument for
the emission, transmission or reception of the
service in respect of which the invoice for the
supply is issued or is to be issued, is ordinarily
situated.
(12) In the case of electronic commerce described in
section 16 (2) (b), the place of the supply
is the place where the effective use and enjoy- ment
occurs.
(13) The place of supply of a recharge card or other
similar mode of recharging is the place where the
product is supplied.
Taxable value
Value of taxable supply
43.
(1) The value of a taxable supply,
(a)
where the supply is for monetary consideration, is
the amount of the consideration with the addition of
all duties and taxes excluding the tax; and ,
(b)
where the supply is not for monetary consideration
or is only partly for monetary consideration, is the
open market value of a similar supply excluding the
tax.
(2) For the purposes of this Act, the open market
value of a supply of goods or services is the value
determined under subsection 1 (a), if the
supplier, purchaser or any other person concerned in
the transaction were completely independent of each
other and did not in any way influence the
transaction.
(3) Where the open market value of a taxable supply
cannot be determined under this section, the open
market value of the supply is the value determined
by the Commissioner-General having regard to all the
circumstances of the supply or a similar supply
(4) The taxable value of
(a)
a taxable supply of goods under a hire purchase
agreement or finance lease,
(b)
a taxable supply of goods by way of an application
to a different use,
(c)
a taxable supply for reduced consideration, or
(d)
a taxable supply described in subsection (3) of
section 19, is the open market value of the goods or
services at the time the supply is made, excluding,
in the case of a hire purchase agreement or finance
lease, any separately stated interest or finance
charges.
(5) Where a taxable supply is made without a
separate amount for the consideration being
identified as a payment of the tax, the taxable
value of that supply is the amount of the
consideration paid excluding the tax.
(6) For the purposes of subsection (3), "similar
supply," in relation to a taxable supply, means a
supply that is identical to or closely or that
substantially resembles the taxable supply, having
regard to the characteristics, quality, quantity
supplied, functional components, reputation of, and
materials comprising the goods or services which are
the subject of the taxable supply.
(7) Where a supply is made by a taxable person for
no consideration or for a consideration that is less
than the open market value of that supply and
(a)
the supplier and the recipient are related persons,
or
(b)
the recipient is an approved charitable
organisation, the value of the supply is the open
market value of the supply.
(8) Where a taxable person makes a supply of goods
or services referred to in section 21, the value of
the supply is the lesser of
(a)
the consideration paid or payable by the taxable
person for those goods or services; or
(b)
the open market value of the supply.
(9) The Minister may, by legislative instrument,
make Regulations to prescribe rules to determine the
value of a supply under subsection (8) where the
taxable person applies less than the entire goods or
services to a different use.
(10) The value of a supply of goods under a credit
agreement is the cash value of the supply.
(11) Where under section 22 (1), a debtor makes a
supply of goods as a result of the repossession of
those good from the debtor by the creditor under a
credit agreement, the value of the supply is an
amount equal to the balance of the cash value of the
supply of those goods to the debtor that has not
been recovered at the time of the supply.
(c)
a taxable supply for reduced consideration, or
(d)
a taxable supply described in subsection (3) of
section 19, is the open market value of the goods or
services at the time the supply is made, excluding,
in the case of a hire purchase agreement or finance
lease, any separately stated interest or finance
charges.
(5) Where a taxable supply is made without a
separate amount for the consideration being
identified as a payment of the tax, the taxable
value of that supply is the amount of the
consideration paid excluding the tax.
(6) For the purposes of subsection (3), "similar
supply," in relation to a taxable supply, means a
supply that is identical to or closely or that
substantially resembles the taxable supply, having
regard to the characteristics, quality, quantity
supplied, functional components, reputation of, and
materials comprising the goods or services which are
the subject of the taxable supply.
(7) Where a supply is made by a taxable person for
no consideration or for a consideration that is less
than the open market value of that supply and
(a)
the supplier and the recipient are related persons,
or
(b)
the recipient is an approved charitable
organisation, the value of the supply is the open
market value of the supply.
(8) Where a taxable person makes a supply of goods
or services referred to in section 21, the value of
the supply is the lesser of
(a)
the consideration paid or payable by the taxable
person for those goods or services; or
(b)
the open market value of the supply.
(9) The Minister may, by legislative instrument,
make Regulations to prescribe rules to determine the
value of a supply under subsection (8) where the
taxable person applies less than the entire goods or
services to a different use.
(10) The value of a supply of goods under a credit
agreement is the cash value of the supply.
(11) Where under section 22 (1), a debtor makes a
supply of goods as a result of the repossession of
those goods from the debtor by the creditor under a
credit agreement, the value of the supply is an
amount equal to the balance of the cash value of the
supply of those goods to the debtor that has not
been recovered at the time of the supply.
(12) For the purposes of subsection (11), the
balance of the cash value of the supply is the
amount that remains after deducting from the cash
value so much of the sum of the payments made by the
debtor under the credit agreement as, on the basis
of an apportionment in accordance with the rights
and obligations of the parties to the agreement, may
properly be regarded as having been made in respect
of the cash value of the supply.
(13) The value of a supply of services under section
22 (2) is an amount equal to the amount referred to
in that subsection that is retained or recoverable.
(14) Where
(a)
the whole or part of a taxable activity engaged in
by a taxable person consists in supplying to a
number of persons goods to be sold, whether by the
persons or others, to consumers at retail, and
(b)
those persons are not taxable persons,
the Commissioner -General may by notice in writing
to the taxable person direct that the value of the
supply made after the giving of the notice or after
a later date that may be specified in the notice
shall be taken to be its open market value on a sale
to consumers at retail.
(15) Where the grant of a right to receive goods or
services for a monetary value stated on a token,
voucher, gift certificate, or stamp is a supply
referred to in section 29 the value of the supply
shall be an amount equal to the amount by which the
consideration exceeds the monetary value of the
token, voucher, gift certificate, or stamp.
(16) Where the holder of a token, voucher, gift
certificate, or stamp issued by a taxable person who
is the issuer for no consideration surrenders the
token, voucher, gift certificate, or stamp to a
supplier of goods or services other than the issuer
in return for a price discount on a taxable supply,
the supplier shall include in the value of the
supply of the goods or services the monetary value
stated on the token, voucher, gift certificate, or
stamp, less the tax fraction of the monetary value.
(17) For the purposes of subsection (16), the
monetary value is inclusive of tax.
Taxable value for determining the tax on imported
goods and services
44. (1) The value for determining the tax chargeable
on taxable imports of goods is the import value
calculated in accordance with section 29 to 35 of
the Customs, Excise and Preventive Service
(Management) Act, 1993 (P.N.D.C.L. 330), with the
addition of
(a)
the import duties and taxes other than the tax; and
(b)
the cost of insurance and freight which is not
included in the customs value under this subsection.
(2) Subject to subsection (3), the value of an
import of services is the amount of the
consideration for the import.
(3) The value of the import of services is the open
market value of the import of the services where
(a)
an import of services is made for no consideration
or for a consideration that is less than the open
market value of that import, and
(b)
the supplier and the recipient are related persons.
(4) Where a portion of the price of an import of
services represents tax imposed by this Act that is
not accounted for separately, the value of the
import is the price reduced by an amount equal to
the tax fraction multiplied by that price. .
Adjustments
45. (1) This section applies where in relation to a
taxable supply by a taxable person
(a)
the supply is cancelled;
(b)
the nature of the supply has been fundamentally
varied or altered;
(c)
the previously agreed consideration for the supply
has been altered by agreement with the recipient of
the supply, whether due to an offer of a discount or
for any other
reason; or
(d)
the goods or services or part have been returned to
the supplier.
(2) Where in addition to the conditions in
subsection (1), the taxable person making the supply
has
(a)
given a tax invoice in relation to the supply and
the amount shown on the invoice as the tax charged
on the supply is incorrect because of the occurrence
of anyone or more of the events mentioned in
subsection (1), or
(b)
filed a return for the period in which the supply
was made and has accounted for an incorrect amount
of output tax on that supply because of the
occurrence of anyone or more of the events mentioned
in subsection (1),
the taxable person making the supply shall make an
adjustment as provided under subsections (3) and
(5).
(3) Where the output tax properly chargeable in
respect of the supply exceeds the output tax
actually accounted for by the taxable person making
the supply, the amount of the excess shall be
regarded as tax charged by the person in relation to
a taxable supply made in the tax period in which the
events referred to in subsection (1) occurred.
(4) For purposes of subsection (3), the taxable
person making the supply shall issue to the
recipient of the supply a tax debit note containing
the particulars specified in the Fourth Schedule and
in the form specified by the Commissioner-General.
(5) Subject to subsection (6), where the output tax
actually accounted for exceeds the output tax
properly chargeable in relation to that supply, the
taxable person making the supply shall be allowed a
deductible input tax for the amount of the excess in
the tax period in which the events referred to in
subsection (1) occurred.
(6) For purposes of subsection (5), the taxable
person making the supply shall issue to the
recipient of the supply, a tax credit note
containing the particulars specified in the Fourth
Schedule and in the form specified by the
Commissioner-General.
(7) A deductible input tax is not allowed under
subsection (5), where the supply has been made to a
person who is not a taxable person, unless the
amount of the excess tax has been repaid by the
taxable person to the recipient, whether in cash or
as a credit against an amount owed to the taxable
person by the recipient.
(8) A person who
(a)
fails to provide a required tax credit note or tax
debit note; or
(b)
provides a tax credit note or tax debit note
otherwise than as required by this section
is liable to
(a)
a penalty of three times the amount of tax involved
or two hundred and fifty currency points whichever
is greater; and
(b)
the penalty imposed under section 58,
(9) A person who commits an offence under
subsection (8) is liable on summary conviction to a
penalty of three times the amount of tax involved or
two hundred and fifty Ghana Cedis, which ever is
greater.
Adjustment on account of bad debts
46.
(1) Where a taxable person issues a tax invoice for
the supply of taxable goods or services and the
whole or part of the consideration for the supply
was not received by the taxable person, the taxable
person may deduct input tax under section 28 for tax
paid in respect of the taxable supply that is
subsequently treated as a bad debt.
(2) Subject to subsection (5), the amount of the
deduction allowed under subsection (1), is the
amount of the tax paid in respect of the taxable
supply which corresponds to the amount of the debt
treated as a bad debt.
(3) The deduction under subsection (2)
(a)
becomes due on the date on which the bad debt was
written off in the accounts of the taxable person;
and
(b)
is available only if the taxable person satisfies
the Commissioner-General that reasonable efforts
have been made to recover the amounts due and
payable.
(4) Where an amount in respect of which a deduction
has been allowed in accordance with subsection (2)
is at any time wholly or partly recovered by the
taxable person, the taxable person is regarded as
having charged tax in respect of a taxable supply
made during the tax period in which the bad debt is
wholly or partly recovered, with the amount of tax
calculated according to the following formula: A x
B/C where,
(a)
A is the amount allowed as a deduction under
subsection (2);
(b)
B is the amount of the bad debt recovered; and
(c)
C is the amount of the bad debt previously written
off. (5) A deduction is allowed under subsection (2)
only if
(a)
the taxable supply was made to a person other than a
taxable person; or
(b)
the taxable supply was made to a taxable person and
the person claiming the deduction under subsection
(2) issued a tax credit note to the taxable
purchaser listing the amount claimed under
subsection (2).
Calculation of tax payable and refunds
Tax payable for tax period
47.
(1) The tax payable by a taxable person for a tax
period in respect of taxable supplies is the total
amount of output tax chargeable by the person in
respect of the taxable supplies made, or considered
to have been made, by that person during the period,
less the total deductible input tax allowed to the
person for the period under section 28.
(2) Where the total amount of deductible input tax
allowed to a taxable person for a tax period exceeds
the total amount of output tax chargeable by that
person for that period, the amount of the excess tax
shall be dealt with in accordance with section 30.
(3) The tax payable on an import of services, other
than as specified under subsection (3) of section 11
is provided under section 33.
(4) Where it is difficult under the rules in this
Act for taxable persons in certain industries to
calculate their tax liability, the Minister may, by
legislative instrument, make Regulations to
prescribe the method by which those persons shall
account for their taxable activity and calculate
their tax payable.
Deductible input tax
48. (1) Subject to section 29, at the end of the tax
period provided for in this Act or prescribed by the
Regulations, a taxable person may deduct the
following from the output tax due for the period:
(a)
tax on goods and services purchased in the country
and goods imported by that person and used wholly,
exclusively and necessarily in the course of the
taxable activity of that person subject to the
condition that
(i) the supply is a taxable supply;
(ii) in respect of purchases made in Ghana, the
taxable person is in possession of a tax invoice
issued under this Act;
(iii) in respect of import or removal of goods from
a bonded warehouse, the taxable person is in
possession of relevant customs entries indicating
that tax
was paid;
(b)
input tax deduction allowed under sections 25 and 26
for the tax period;
(c)
during the tax period by the taxable person as a
prize or winnings to the recipient of services under
subsection (10) of section 10;
(d)
an amount equal to the tax fraction of any amount
paid during the tax period by the taxable person to
indemnify another person under a non-life insurance
contract where
(i) the supply of the non-life insurance contract is
a taxable supply;
(ii) or services to the taxable person or the
importation of goods or services by the taxable
person;
(iii) the supply of the non-life insurance contract
is not a supply charged with tax at a rate of zero
percent under section 16; and
(iv) or services to that other person where those
goods are situated outside Ghana or those services
are physically performed elsewhere than in Ghana at
the time of the supply; and
(e)
an amount equal to the tax fraction of any amount
paid during the tax period by the taxable person to
a supplier in respect of the redemption of a token,
voucher, gift certificate, or stamp referred to in
section 23(16).
(2) The tax deducted from the output tax under
subsection (1) is known as deductible input tax or
an input tax deduction.
(3) Unless otherwise provided in this Act, an input
tax deduction shall not be allowed on purchases or
imports in respect of exempt supplies by the taxable
person.
(4) An input tax deduction shall not be made
(a)
more than once; or
(b)
after the expiration of a period of six months after
the date the deduction accrued.
(5) A taxable person does not qualify for
deductible input tax in respect of a taxable supply
or import of a motor vehicle or vehicle spare parts
unless the taxable person is in the business of
dealing in or hiring motor vehicles or selling
vehicle spare parts, and the vehicle or spare parts
are for use in that business.
(6) A taxable person does not qualify for deductible
input tax ill respect of a taxable supply relating
to entertainment including restaurant, meals and
hotel expenses unless the taxable person is engaged
in a taxable activity of providing entertainment,
and the entertainment is for use in that taxable
activity.
(7) A taxable person does not qualify for deductible
input tax on fees or subscriptions paid by the
person in respect of membership of a club,
association, or society of a sporting, social, or
recreational nature by any person.
(8) Where a taxable supply to, or an import of goods
by, a taxable person is partly for use in a taxable
activity and partly for personal or other use, the
amount of input tax allowed as a deductible input
tax shall be restricted to that part of the supply
that relates to the use in connection With a taxable
activity.
(9) Where goods for which an input tax deduction has
been allowed under this Act ceases to be applied to
taxable transactions before the end of their life,
the goods shall be treated as sold at the time of
the cessation for the open market value.
(10) In the case of a taxable person who regularly
resells used goods purchased from consumers, the
Commissioner-General may determine the procedures
for allowing that person input tax deductions.
(11) Where a taxable person does not have a tax
invoice that provides evidence of the input tax
paid, the Commissioner-General may allow a
deductible input tax in the tax period in which the
deduction arises where the Commissioner-General, in
addition to any condition specified in the
Regulations, is satisfied that the
(a)
taxable person took all reasonable steps to acquire
a tax Invoice;
(b)
failure to acquire a tax invoice was not the fault
of the taxable person; and
(c)
amount of deductible input tax claimed by the
taxable person is correct.
(12) A newly-registered taxable person may claim a
deduction for allowable input tax in the first tax
period that registration is effective in the form
prescribed by the Commissioner-General, for
(a)
goods acquired, by supply or import, within four
months before the effective day of registration and
on hand on the effective date of registration; and
(b)
capital goods acquired, by supply or import, within
six months before the effective date of registration
and on hand on the effective date of registration.
Deductible input tax for mixed taxable and exempt
supply
49.
(1) A taxable person who makes both taxable and
exempt supplies may deduct the input tax on the
taxable purchases and taxable imports which can be
directly attributed only to the taxable supplies
made.
(2) Where a taxable person has made both taxable and
exempt supplies, but cannot directly attribute input
tax to the taxable and exempt supplies under
subsection (1), that person may deduct as input tax
on the taxable purchases and taxable imports, an
amount that bears the same ratio as the taxable
supplies bear to the total supplies, applying the
apportionment formula specified in the Fifth
Schedule.
(3) For purposes of subsections (1) and (2), if the
ratio of taxable supplies to total supplies for the
tax period is less than five per cent, the taxable
person is not entitled to deduct any input tax for
the tax period.
(4) For purposes of subsections (1) and (2), if the
ratio of taxable supplies to total supplies for the
tax period is more than ninety-five percent, the
taxable person may deduct the entire input tax
allowable on the taxable purchase and taxable
imports .
. (5) The Commissioner-General may approve or direct
alternative methods of apportioning input tax where
the Commissioner-General considers that the methods
described in this section will result in an
unreasonable calculation of the input tax which may
be deducted.
(6) Despite any other provision of this section, in
the case of a bank or other financial institution
making both exempt and taxable supplies for a tax
period, the amount of the input tax allowed as a
deduction for that period is limited to the amount
of input tax payable in respect of supplies or
imports received which are directly attributable to
the making of taxable supplies.
Refund or credit for excess tax paid
50. (1) Where the amount of input tax which is
deductible exceeds the amount of output tax due in
respect of the tax period,
(a)
the excess amount shall be credited by the
Commissioner- General to the taxable person, and
(b)
in the case of the portion of the excess
attributable to exports, the Commissioner -General
may refund the excess credit to the taxable person
where that person's exports exceed twenty-five per
cent of the total supplies within the tax period and
the total export proceeds have been repatriated by
the importers' banks to the taxable person's
authorised dealer banks in the country.
(2) A taxable person may apply for a refund under
subsection (1)(b) where the credit for the
excess amount remains outstanding for a continuous
period of three months or more, except that where
the Commissioner-General orders an audit of the
claim for refund, for purposes of section 51, the
application shall be treated as received on the date
that the audit is concluded.
(3) Subject to section 45, where the amount of tax
paid by a person, other than in the circumstances
specified in subsections (1) and (2), was in excess
of the amount properly subject to tax under this
Act, the amount of the excess shall be treated in
the manner provided for under subsection (5) to (9).
(4) Where a person has overpaid tax in the
circumstances specified under subsection (3), the
person may apply in writing to the Commissioner
-General for a refund of the excess amount of tax,
accompanied by documentary proof of payment of the
excess amounts.
(5) Subject to this section, where the
Commissioner-General is satisfied that a person who
has made an application under subsection (4) has
overpaid tax, the Commissioner- General shall
(a)
first apply the amount of the excess against the
liability of that person for any tax, levy, interest
or penalty administered by the Commissioner
-General, and
(b)
repay any amount remaining to the person within
thirty days of being satisfied that the person has
overpaid tax.
(6) Subject to subsection (8), a claim for a refund
under subsection (4) shall be made within six months
after the date on which the excess arose.
(7) The Commissioner-General shall serve on a person
claiming a refund, a notice in writing of the
decision in respect of the claim.
(8) Subject to subsections (3) and (4) of section
19, where the registration of a taxable person is
cancelled and the person has excess credits that
were not recovered as provided in this section, the
excess credits may be treated in the manner
prescribed under subsection (3) to (7) of this
section.
(9) For the purpose of this section, a-taxable
person applying for a refund shall submit to the
Commissioner-General a completed Refund Claim Form
together with the relevant tax invoices or, in the
case of imported goods, the relevant customs
document for tax paid.
(10) Where the Commissioner-General rejects the
claim for a refund, the Commissioner-General may
recover in accordance with this Act any tax
previously refunded.
(11) In addition to a Refund Claim Form, the
Commissioner- General may direct the claimant to
submit other documents.
(12) The Commissioner-General may specify the manner
in which documents under subsection (11) may be
submitted.
(13) Except as otherwise provided in this section, a
credit under subsection (1) shall be carried forward
to the next tax period.
(14) A person who makes a claim for refund which
that person is not entitled to under this section is
liable to a penalty of double the original amount of
the refund plus interest.
Time for payment of refund
51.
(1) Where a taxable person is entitled to a refund
of tax under this Act, the Commissioner-General
shall pay the refund within thirty days after
receipt of the application, where
(a)
the previous returns have been submitted by the due
dates with no tax for any period outstanding, and
(b)
the amounts of tax, penalties and interest from
previous tax periods have been paid by the due
dates.
(2) Where
(a)
the conditions specified in paragraph (a) of
subsection (1) have not been fulfilled, the
Commissioner-General shall reject the claim for
refund, and
(b)
the amounts specified in paragraph (b) of
subsection (1) have not been paid, the
Commissioner-General shall offset any entitlement
for a refund against the amounts due, and notify the
applicant of the decision in writing within thirty
days after receipt of the application.
(3) Where the Commissioner-General fails to pay a
refund of tax relating to an excess under section 50
within the period specified in section 50 or
subsection (1) of this section, the
Commissioner-General is required tr nay the
taxable person entitled to the refund an additional
amount as interest at the prevailing Bank of Ghana
discount rate plus one quarter of that rate each
day, commencing on the day after the period within
which the Commissioner-General is required to pay
the refund and ending on the date that the payment
of the refund is made.
Tax return, records and assessment
Submission of tax return and date of payment of the
tax
52.
(1) Unless otherwise directed in writing by the
Commissioner-General, a taxable person shall account
for the tax on a tax return for each tax period.
(2) The tax return shall be in a form and be filed
in the manner prescribed by the Commissioner-General
and shall state the amount of tax payable by the
person for the period and any other matter that may
be prescribed.
(3) In addition to any return required under
subsection (1), the Commissioner-General may require
a person, to submit to the Commissioner-General,
whether on that person's own behalf or as agent or
trustee of another person, a further or other
returns in the prescribed form as and when required
by the Commissioner-General.
(4) The tax return shall be submitted to the
Commissioner-General not later than the last working
day of the month immediately following the month to
which the return relates, whether or not tax is
payable for the tax period.
(5) The payment of the tax due for a tax period
shall be made to the Commissioner-General not later
than the date the return prescribed in subsection
(4) is required to be submitted.
(6) A taxable person directed to make a tax return
other than for each tax period shall be informed by
the Commissioner-General of the date by which the
return and payment shall be made.
(7) A taxable person who without justification fails
to submit to the Commissioner-General that person's
tax return by the due date is liable to a pecuniary
penalty of five hundred Ghana Cedis and a further
penalty of ten Ghana Cedis for each day after the
due date that the return is not submitted.
(8) The Minister may, by legislative instrument,
make Regulations to provide further for matters
relating to a tax return.
Payment of tax on import of services
53. (1) Where tax is payable on an import of
services, other than as provided under 31(1) (c),
the person liable for the tax under subsection
(1) (c) of section 2 is required to
(a)
furnish the Commissioner-General with a service
import declaration, and .
(b)
pay the tax due in respect of the import within
twenty-one' calendar days after the tax period in
which the services were imported.
(2) A service import declaration shall
(a)
be in the form prescribed by the
Commissioner-General,
(b)
state the information necessary to calculate the tax
payable in respect of the import, and
(c)
be furnished at the time and in the manner
prescribed by the Commissioner-General.
(3) Except as otherwise provided in this Act, a form
prescribed by the Commissioner-General is
enforceable when published in the Gazette and
two daily newspapers of national circulation.
Assessment of the tax and correction of return
54. (1) Where the Commissioner-General has reason to
believe that
(a)
a person will become liable for the payment of an
amount of tax but that person is unlikely to pay the
amount,
(b)
a person, other than a taxable person, supplies
goods or services and represents that tax is charged
on the supply,
(c)
a taxable person supplies goods or services and the
supply is not a taxable supply or is a taxable
supply charged with tax at the rate of zero percent
and, in either case, the tax- able person represents
that a positive rate of tax is charged on the
supply,
(d)
a taxable person fails to submit a tax return
specified in this Act or Regulations,
(e)
a return is incorrect or that any lawful tax has not
been paid; or
(f)
sectionl4 applies to a person,
the Commissioner-General, based on any information
available, may make an assessment of the amount of
tax payable by the person or of the amount of tax
claimed by the person as payable in respect of a
supply.
(2) The person assessed
(a)
under paragraphs (b) or (c) of
subsection (1), is the person making the supply;
(b)
under paragraph (a) of subsection (1), is the
person required to account for the tax under this
Act;
(c)
under paragraphs (d) or (e) of
subsection (1), is the person required to submit the
return or required to pay the tax; or
(d)
under paragraph (f) is the person to whom
section 14 applies.
(3) An assessment may be made at any time.
(4) The Commissioner-General may, based on the
information available, estimate the tax payable by a
person for the purposes of making an assessment.
(5) A person who is not satisfied with a submitted
return may apply to the Commissioner-General in
writing for authority to make an addition to or
alteration to the return.
(6) For purposes of subsection (5), the application
shall
(a)
state in detail the grounds on which the application
is made, and
(b)
be submitted not more than three months after the
submission of the original return.
(7) After considering an application under
subsection (5), the Commissioner-General may
(a)
approve or refuse to approve the application; and
(b)
make an assessment of the amount that, in the
Commissioner-General's opinion, is the amount of tax
payable under this Act.
(8) Where an assessment has been made under this
section, the Commissioner-General shall serve a
notice of the assessment on the per- son assessed,
and the notice shall state
(a)
the tax payable;
(b)
the date the tax is due and payable;
(c)
the place for payment of the tax; and
(d)
the manner of objecting to the assessment.
(9) An amount assessed under paragraphs (b), (c)
or (e) of subsection (1) is for the
purposes of this Act, a tax charged under this Act.
Recovery of tax due, interest and other liabilities
Recovery of tax due
55.
An amount shown on an invoice or sales receipt as
tax on a supply of goods or services is recoverable
as tax due from the person issuing the invoice or
sales receipt, whether the invoice or sales receipt
is issued by a taxable person or another person, and
whether or not
(a)
the invoice is a tax invoice issued under this Act
or in accordance with Regulations;
(b)
an amount of tax is chargeable on the supply; or
(c)
the person issuing the invoice is a taxable person.
Recovery from recipient of a supply
56.
(1) Where, in respect of a taxable supply by a
taxable person, the taxable person has, in
consequence of a fraudulent action or
misrepresentation by the recipient of the supply,
incorrectly treated the supply as an exempt or
zero-rated supply, the Commissioner-General may
raise an assessment on the recipient for the amount
of unpaid tax in respect of the supply together with
any interest and penalty that has
become payable.
(2) The Commissioner-General shall serve notice of
an assessment under subsection (1) on the recipient
specifying
(a)
the tax, interest and penalty payable;
(b)
the date the tax is due and payable; and
(c)
the time, place, and manner of objecting to the
assessment.
(3) An assessment made under subsection (1) is an
assessment for all purposes of this Act.
(4) Subsection (1) does not preclude the
Commissioner-General from recovering the tax,
interest, and penalty due from the taxable person
making the supply.
(5) For the purposes of subsections (1) and (4),
(a)
any amount recovered from the recipient that is due
from the taxable person shall be credited by the
Commissioner- General against the liability of the
taxable person; and
(b)
any amount recovered from the taxable person that is
due from the recipient shall be credited by the
Commissioner- General against the liability of the
recipient.
(6) Where an amount of tax, interest, or penalty
referred to in subsection (1) is paid by the taxable
person, the taxable person may recover the amount
paid from the recipient.
(7) An amount assessed under this section is treated
for all purposes of this Act as an assessment.
Value Added Tax Refund Account
57.
(1) The Minister shall, with the approval of
Parliament, set aside a percentage of tax imposed,
both on imports of goods and services and supplies
of taxable goods and services other than zero-rated
supplies that Parliament may approve, in an account
designated as the "Value Added Tax Refund Account" .
(2) The Value Added Tax Refund Account, shall be
used to make payment for
(a)
refunds due under this Act;
(b)
proven overpayment of tax;
(c)
refunds due to non-taxable persons; and
(d)
refunds due to payments made on non-taxable
supplies.
Failure to issue tax invoice
58.
A person who fails to issue a tax invoice or sales
receipt as required under section 41 for taxable
goods supplied or taxable services rendered, commits
an offence and is liable on summary conviction to a
fine of not more than one hundred penalty units or
to a term of imprisonment of not more than six
months or to both ..
Evasion of tax payment
59.
(1) A person who knowingly engages in the evasion of
tax or takes steps with a view to evasion of tax
payable by that person or any other person, commits
an offence and is liable on summary conviction to a
fine of not more than three times the tax being
evaded or to a term of imprisonment of not more than
five years or to both.
(2) A person who acquires possession of or deals
with any goods, or accepts the supply of any goods
or services having reason to believe that the tax on
the supply of the goods or services has not been, or
will not be paid, or that tax has been, or will be,
falsely reclaimed, commits an offence and is liable
on summary conviction to a fine of not more than
three times the tax evaded or to a term of
imprisonment of not more than five years or to both.
Power to seal off premises
60.
(1) Where a person repeatedly contravenes
(a)
section 41 in relation to tax invoice;
(b)
section 45 in relation to tax debit notes or tax
credit notes;
(c)
section 50 by improperly claiming tax refunds;
(d)
sections 52 or 53 by failing to file returns; or
(e)
sections 52 or 53 by failing to pay the tax when
due;
the Commissioner-General may, after obtaining an
order of a court having jurisdiction in respect of
the person, close one or more business premises of
that person for a period of between three to thirty
calendar days.
(2) For the purposes of subsection (1), the
Commissioner-General may use reasonable force and
police assistance, where necessary, to close any
premise of the person and bar access to the premises
with locks, fencing, boarding, or other appropriate
method.
(3) For the purposes of this section, a repeated
contravention means a contravention that is
committed within one year after receipt by the
person of a written warning, and
(a)
which is of a kind that has been committed more than
once within the year that precedes the year of the
warning, and
(b)
for which repetition may result in closure under
this section.
(4) Subsection (1) applies where a person who
qualifies as a tax-
able person fails to charge tax on taxable supplies
which are not zero-
rated supplies and after being given written notice
by the Commissioner-
General of the failure, continues to fail to charge
the tax where required.
Miscellaneous provisions
Tax-inclusive pricing
61.
(1) Subject to subsection (2), a price advertised or
quoted by a taxable person in respect of a taxable
supply shall include the tax and the taxable person
shall state that fact in the advertisement or
quotation.
(2) A taxable person may advertise or quote a price
in respect of a taxable supply as exclusive of the
tax, but the advertisement or quotation shall
indicate the amount of the tax charged on the
supply, or the price inclusive of the tax, and that
the amount of the tax or the price inclusive of the
tax shall be displayed in as prominent a place as
that on
which the price exclusive of the tax is displayed.
(3) Subject to subsection (4), the price ticket on
goods supplied by a taxable person need not indicate
that the price includes the tax if this is indicated
by way of a notice displayed prominently at the
premises where the taxable person carries on a
taxable activity, including the places in the
premises where payments are effected.
(4) The Commissioner-General may in the case of a
taxable person or a class of taxable persons approve
any other method of displaying prices of goods or
services by the persons.
Declaration of representative
62.
The Commissioner-General may, if the
Commissioner-General considers it necessary to do
so, declare a person- to be a representative of a
taxable.
Person acting in a representative capacity
63.
(1) In this section, "representative", in relation
to a taxable person, means
(a)
the designated officer in the case of a company
other than a company in liquidation;
(b)
a member of the committee of management in the case
of an unincorporated association or body;
(c)
a person who is responsible for accounting for the
receipt and payment of money or funds on behalf of
the company in any other case;
(d)
the liquidator in the case of a company in
liquidation;
(e)
a person responsible for accounting for the receipt
and payment of money under the provisions of any law
or for the receipt and payment of public funds or of
funds voted by
Parliament in the case of the Government or local
authority;
(f)
a partner in the case of a partnership;
(g)
a trustee in the case of a trust; or
(h)
a person controlling the affairs in the country of a
non- resident person including a manager in the
country of a taxable activity of a non-resident
person as defined in section 65.
(2) A representative of a taxable person is
(a)
responsible for performing the duties, including the
payment of tax, imposed by this Act on the taxable
person; and
(b)
personally liable for the payment of tax payable in
the representative capacity of that person if, while
the amount remains unpaid, the representative
(i) alienates, charges, or disposes of any money
received or accrued in respect of which the tax is
payable; or
(ii) disposes of or parts with any fund or money
that belongs to the taxable person which is in the
possession of the representative or which comes to
the representative after the tax becomes payable, if
the tax could legally have been paid from or out of
the fund or money.
(3) This section does not relieve a taxable person
from performing any duty imposed by this Act on the
taxable person which the representative of that
taxable person has failed to perform.
Regulations
64.
(1) The Minister may, by legislative instrument,
make Regulations to
(a)
prescribe rules to determine whether a transaction
constitutes
(i) a supply,
(ii) a supply of goods, or
(iii) a supply of services under section 30(1);
(b)
grant relief from tax on taxable imports of goods or
tax- able supplies of goods acquired in the country
to the persons specified in the Third Schedule under
section 38 (1);
(c)
prescribe rules to determine the time of a supply of
particular goods or services under section 19(14);
(d)
specify conditions and procedures to issue a sales
receipt instead of a tax invoice under section 41
(3);
(e)
define the location of the place of business of the
supplier from which the services are supplied under
section 42 (3); (f) specify rules to
determine the value of a supply where the taxable
persons applies less than the entire goods or
services to different use under section 43 (9);
(g)
prescribe methods by which taxable persons in
certain industries shall account for their activity
and calculate their tax payable under section 47
(4);
(h)
specify conditions to allow a deductible input tax
in the tax period in which the deduction arises
where a taxable person does not have a tax invoice
that provides evidence of the input tax paid under
section 48 (11);
(i)
provide further for matters relating to a tax return
under section 52 (8) and
(j) provide for any other matter necessary for the
effective implementation of this Act.
(2) A person who contravenes a provision of
Regulations made under this Act commits an offence
and is liable on summary conviction to a fine or
imprisonment to be determined by the Minister in the
Regulations. .
Interpretation
,. .
65.
In this Act, unless the context otherwise requires,
"application to a different use" in relation to
goods and services, includes applying the goods or
services to personal use or to use by a relative or
any other non-business use;
"auctioneer" means a person who is
(a)
qualified under the Auction Sales Act, 1989
(P.N.D.C.L. 230) or other applicable law as an
auctioneer; and
(b)
an agent for and behalf of another person engaged in
a taxable activity that pertains to the supply of
goods by auction;
"betting" means an arrangement that involves risking
money or another valuable thing on an event which
has an uncertain result;
"business" includes a profession, trade, venture or
undertaking, the provision of personal services or
technical and managerial skills and any adventure or
concern in the nature of trade other than
employment;
"cash value", in relation to a supply of goods under
a credit agreement, means
(a)
where the seller or lessor is a bank or other
financial institution, an amount equal to the sum of
(i) the consideration paid by the bank or other
financial institution for the goods or the open
market value of the supply of the goods to the bank
or other financial institution,
whichever is the greater; and
(ii) any consideration for the erection,
construction, assembly, or installation of the
goods borne by the bank or other financial
institution; or
(b)
where the seller or lessor is a dealer, an amount
equal to the sum of
(i) the consideration at which the goods are
normally sold by the dealer for cash; and:
(ii) any consideration for erection, construction,
assembly, or installation of the goods borne by the
dealer;
"charitable organisation" means an entity
(a)
that is established and operates as a charitable
organisation of a public nature;
(b)
that has been declared a charitable institution by a
written ruling currently in force made by the
Commissioner -General; and
(c)
that does not have an income or asset that confers a
private benefit, other than in pursuit of the
functions of the entity as a charitable
organisation;
" Commissioner-General" means the
Commissioner-General appointed under section 13 of
the Ghana Revenue Authority Act, 2009 (Act 791);
"company" means an association or body corporate or
unincorporated, whether created or recognised under
a law in force in the country or elsewhere, and
whether created for
profit or non-profit purposes, but does not include
a partnership or trust;
"consideration," in relation to a supply of goods or
services and an import of services, includes
(a)
the total amount in money or in kind paid or payable
for the supply by any person, directly or
indirectly, and
(b)
duties, levies, fees and charges paid or payable on,
or by reason of the supply or import of- services,
other than the tax;
and is reduced by a deposit other than a deposit on
a returnable container and by any import of
services;
"credit agreement" means a hire purchase agreement
or finance lease;
"currency point" is the equivalent often thousand
Ghana Cedis; "day" means a calendar day, except as
otherwise provided; "deductible input tax" has the
meaning assigned to it in section
"employment" means a contract of service whether
express or implied and where express, whether in
writing or oral and includes:
(a)
the position of an individual in the employment of
another person; or
(b)
the holding of or acting in any office or position
entitling the holder to a fixed ascertainable
remuneration other than an office or a position as a
director of a company or a manager of a body of
persons or as a partner in a partnership;
"exempt import" has the meaning assigned to it in
section 37;
"exempt supply" means a supply of goods or services
to which section 35 applies;
"export country" has the meaning assigned to it in
the Second Schedule;
"finance lease," in relation to goods, means a lease
of goods, where
(a)
the lease term exceeds seventy-five percent of the
expected life of the goods;
(b)
the lessee has an option to purchase the goods for a
fixed or determinable price at the expiration of the
lease; or
(c)
the estimated residual value of the goods to the
lessor at the expiration of the lease term, and the
period of any option to renew, is less than twenty
percent of the open market value of the goods at the
commencement of the lease;
"foreign-going aircraft" has the meaning assigned to
it in the Second Schedule;
"foreign-going vessel" has the meaning assigned to
it in the Second Schedule;
"game of chance" has a meaning similar to "betting";
"gaming" means "betting";
"gaming machine" means a machine capable of
accepting money or tokens risked on the outcome or
in forecasting the outcome of some events;
"Ghana Revenue Authority" means the body established
under section I of the Ghana Revenue Authority Act,
2009 (Act 791);
"goods" includes movable and immovable tangible
property, thermal and electrical energy, heating,
gas, refrigeration, air conditioning and water, but
does not include money;
"haulage" means the act, process or business of
transporting goods for others 'or oneself by road,
rail, water or air;
"hire purchase agreement" means a hire purchase
agreement within the meaning of the Hire Purchase
Act, 1974 (N.R.C.D. 292);
(a)
goods, to bring or cause to be brought into the
country from a foreign country or place; or
(b)
services, a supply of services to a resident person
by (i) a non-resident person; or
(ii) a resident person from a business carried on by
the resident person outside the country; to the
extent that the services are utilised or consumed in
the country other than to make taxable supplies;
"import declaration" has the meaning assigned to it
in subsection (3) of section I;
"import of services" has the meaning assigned to it
in paragraph (b) of the definition of
"import;"
"importer," in relation to
(a)
an import of goods, includes the person who owns the
goods or any other person who is for the time being
in possession of or beneficially interested in the
goods; and
(b)
goods imported by means of a pipeline, includes the
owner of the pipeline;
"incapacitated person" means an individual under the
age of eighteen years or an individual who, by
reason of mental ill-health, is incapable of
managing the affairs of that individual;
"input tax" means tax payable by a taxable person in
respect of an acquisition of a taxable supply of
goods and services or a taxable import;
"layaway agreement" means a sale transaction whereby
goods are reserved by payment of a deposit and
subsequently made available on full payment for the
goods;
"lottery" means a scheme whereby rights are sold to
take part in a draw by lot for a prize;
"Minister" means the Minister responsible for
Finance;
"money" means
(a)
a coin or paper currency recognised in the country
as legal tender; or
(b)
a bill of exchange, promissory note, bank draft,
postal order, money order, or similar instrument
other than an item of numismatic interest;
"non-resident" means a person who is not a resident
of the country and a person referred to in paragraph
(b) of the definition of "resident person" to
the extent that the person is not a resident;
"non-traditional export" means export other than
(a) cocoa beans;
(b)
lumber and logs;
(c)
unprocessed gold or other minerals;
(d)
electricity; and
(e)
petroleum, crude oil or natural gas;
"officer" means the Commissioner-General appointed
under section 13 of the Ghana Revenue Authority Act,
2009 (Act 791) as well as the Commissioners and
other members of staff appointed under subsection
(1) of section '16 of that Act, to whom the
functions of the Ghana Revenue' Authority may be
delegated;
"open market value" has the meaning assigned to it
in section 43;
"output tax" means the tax chargeable under
subsection (a) of section land other sections
of the Act in respect of a tax- able supply;
"penalty unit," has the meaning assigned in section
27 of the Interpretation Act, 2009 (Act 792);
"person" includes the Government of Ghana, an agency
or political subdivision of the Government of Ghana,
a natural person, trust, company, or partnership;
"promoter of public entertainment" means a person
who arranges the staging of public entertainment,
but does not include entertainment organised by
(a)
an approved educational institution;
(b)
the board of management or a parent teacher
association of an approved educational institution;
(c)
an approved religious organisation; or
(d)
an approved charitable organisation;
"public entertainment" means a musical
entertainment, theatrical performance, comedy show,
dance performance, circus show, or show connected
with a festival, or any similar event to which the
public is invited;
"recipient" means the person to whom a supply or
import is made;
"registered" means registered under section 6;
"Regulations" means Regulations made under this Act;
"related person" means
(a)
a natural person and a relative. of that natural
person;
(b)
a trust and a person who is or may be a beneficiary
in respect of that trust or whose relative is or may
be a beneficiary;
(c)
a partnership or company other than a stock company
and a member of that partnership or company who, on
account of shares personally held together
with shares or other membership interests held by
persons who are related to that member under an-
other provision of this definition, owns twenty-five
percent or more of the rights to income or capital
of the partnership or company; or
(d)
a shareholder in a stock company and the stock
company if the shareholder on account of shares
personally held together with shares held by persons
who are related to the shareholder under a provision
of this definition and the shareholder
(i) controls twenty five percent or more of the
voting power in the stock company; or
(ii) owns twenty five percent or more of the rights
to dividends or of the rights to capital; or
(e)
two companies, if a person, either alone or together
with a person who is related to that person under
another provision of this definition
(i) controls twenty five percent or more of the
voting power in both companies; or
(ii) owns twenty five percent or more of the rights
to dividends or of the rights to capital
in both companies; and, for purposes of paragraphs
(c) and (d) a person is treated as
owning, on a pro rata basis, shares or other
membership interests which are owned or
controlled by the person indirectly through one or
more interposed persons;
"relative" in relation to an individual, includes
the spouse of the individual, an ancestor of the
individual, a descendant of the individual's
grandparents, or the individual's step-
father, stepmother, or stepchild, and for this
purpose, an adopted child is a natural child of the
adopter;
"representative" has the meaning assigned to it in
section 63;
"resident person" means
(a)
the Government of Ghana, an agency or political
subdivision of the Government of Ghana or a person
resident in Ghana for the year in question for pur-
poses of the Internal Revenue Act 2000, (Act 592);
or
(b)
any other person to the extent that the person
carries on in the country a taxable or other
business activity;
"return'; means a return of tax due or a claim for
tax refund under this Act;
"returnable container" means a container
(a)
belonging to a class of containers specified in the
Regulations,
(b)
for which a deposit is charged by the supplier, and
(c)
for which the deposit is required by law or
agreement to be refunded or allowed as credit to the
person returning it;
"services" means anything other than goods or money;
"supplier", in relation to a supply, means the
person making the supply;
"tax" means Value Added Tax imposed under this Act;
"tax fraction" in relation to a taxable supply,
means the fraction calculated in accordance with the
formula R/(lOO + R)
where "R" is the percentage rate of Value Added Tax,
expressed as a whole number, applicable to the
taxable supply;
"tax invoice" means an invoice issued on a supply of
taxable goods and services in accordance with this
Act and Regulations made under this Act;
"tax period" means one calendar month;
"taxable activity" has the meaning assigned to it in
section 5;
"taxable person" has the meaning assigned to it in
section 4;
"taxable supply" has the meaning assigned to it in
section 33;
"taxable transaction" means a taxable supply or an
import of goods or services that is subject to tax
under this Act;
"trust" means an arrangement affecting property in
relation to which there is a trustee;
"trustee" includes
(a)
a person appointed or constituted as a trustee by
act of the parties, by will, by order or declaration
of a Court, or by operation of the law;
(b)
an executor, administrator, tutor or curator;
(c)
a liquidator, receiver, trustee in bankruptcy or
judicial manager;
(d)
a person having the administration or control of
property subject to a trust, usufruct,
fideicommissum, or other limited interest;
(e)
a person acting in a fiduciary capacity;
(f)
a person having either in a private or official
capacity, the possession, direction, control or
management of any property of an incapacitated
person; or
(g)
a person who manages assets under a private
foundation or other similar arrangement;
"Value Added Tax" means the tax imposed under this
Act, and includes any amount to the extent that it
is treated as tax for purposes of this Act; and
"VAT" means Value Added Tax.
Repeal, revocation, savings and transitio nal
provisions
45.
(1) The following enactments are hereby repealed:
(a)
the Value Added Tax Act, 1998 (Act 546);
(b)
the Value Added Tax (Amendment) Act, 2000 (Act 579);
(c) the Value Added Tax (Amendment) Act, 2001
(Act 595);
(d) the Value Added Tax (Amendment) Act, 2002
(Act 629);
(e) the Value Added Tax (Amendment) Act, 2003
(Act 639);
(f) the Value Added Tax (Amendment) Act, 2004
(Act 670);
(g) the Value Added Tax (Amendment No.2) Act,
2004 (Act 671);
(h)
the Value Added Tax (Amendment) Act, 2006 (Act 696);
(i) the Value Added Tax (Amendment) Act, 2007
(Act 734);
(j) the Value Added Tax (Amendment) Act, 2008
(Act 752);
(k) the Value Added Tax (Amendment) (No.2)
Act, 2008 (Act 765);
(I)
the Value Added Tax (Amendment) Act, 2010 (Act 810);
and
(m)
the Value Added Tax (Amendment) Act, 2013 (Act 860).
(2) Regulations 21 and 22 of the Value Added Tax
Regulations, 1998 (L.l. 1646) are hereby revoked.
(3) Despite the repeal under subsection (1), the
provisions of the repealed enactments specified in
the Sixth Schedule
(a)
for the purpose of verifying the relevant tax
returns, and
(b)
for the assessment and recovery of any tax, interest
or penalty payable under the repealed enactments,
shall continue to have effect for the purposes of
administration of the Value Added Tax by the Ghana
Revenue Authority.
(4) Despite the repeal under subsection (1), the
Regulations, bye- laws, notices, orders, directions,
appointments or any other act lawfully made or done
under the repealed enactments and in force
immediately before the commencement of this Act
shall be considered to have been made or done under
this Act and shall continue to have effect until
reviewed, cancelled or terminated.
(5) An exemption or zero-rating provided outside the
Value Added Tax law shall not come into effect for
the purposes of this Act until a corresponding
amendment is made to this Act.
(6) An exemption or relief of specific goods from
Value Added Tax, which was granted in a general
provision for relief from indirect taxes, including
Value Added Tax, under an Act of Parliament in force
prior to the effective date of this Act, shall
continue to have effect to the extent determined by
the Minister by Regulations.
Item
1.
Except as otherwise provided, the supplies specified
in this Schedule are exempt supplies for the
purposes of sections 35 and 37.
2.
For the purposes of this Schedule, the following
definitions apply: " commercial rental
establishment" means
(a)
accommodation in a hotel, motel, inn, boarding
house, guest house, hostel or similar establishment
in which lodging is regularly or normally provided
to five of more persons on a daily, weekly, monthly,
or other periodic charge;
(b)
accommodation in a house, flat, apartment, or room,
other than an accommodation in respect of which the
provisions of paragraph (a) or(c) of the
definition apply
(i) which is regularly or systematically leased or
held for lease as residential accommodation for
continuous periods of not more than forty-five days
in the case of each occupant of the house, flat,
apartment or room; or
(ii) which is leased with utilities and furnishings
provided by the lessor;
(c)
accommodation in a house, flat, apartment, room,
caravan, houseboat, tent or caravan or camping site
which constitutes an asset, including a leased asset
of a business undertaking or a separately
identifiable part of a business undertaking carried
on by a person who
(i) leases or holds for leasing as residential
accommodation, a house, flat, apartment, room,
caravan, houseboat, caravan or camping site in the
course of the business undertaking; and
FIRST SCHEDULE
EXEMPT SUPPLIES
(ii) regularly or normally leases or holds for lease
as residential accommodation, the house, flat,
apartment, room, caravan, houseboat, caravan or
camping site for continuous periods of not more than
forty-five days in the case of each occupant; or
(d)
any other accommodation designated by the Minister
by Regulations to be a commercial rental
establishment other than the accommodation specified
under paragraphs (e), (f) and (g);
(e)
accommodation in a boarding establishment or hostel
operated by any employer solely or mainly for the
benefit of the employees of that employer or of a
related person of that employer or their dependants,
if the establishment or hostel is not operated for
the purpose of making profits from the establishment
or hostel for the employer or a
person related to the employer;
(f)
accommodation in a boarding establishment or hostel
operated by a local authority or an educational
establishment approved by the Minister or Education
otherwise than for the purpose of making profits
from the establishment or hostel; or
(g)
accommodation in a registered hospital, maternity
home, nursing home, or clinic.
"dwelling" means any building, premises, structure
or any place or any part of these which is not a
commercial rental establishment and which is used
Predominantly as a place of residence" or abode of a
natural person or which is intended for use as a
place of residence or abode of a natural person,
together with any appurtenances belonging to the
place and enjoyed with the place;
"education services" means the services supplied to
students as part of the education program provided
by anyone of the following establishments that is
duly registered or licensed by the Minister for
Education
(a)
a day care, including adult day care, provider;
(b)
a pre-primary, primary, or secondary school;
(c)
a technical college, community college or
university;
(d)
an educational institution established for the pro-
motion of adult education, vocational training or
technical education; or
(e)
an institution established for the education or
training of physically or mentally challenged
persons;
"estate developer" means a commercial establishment
engaged in the business of the construction and sale
of immovable property;
"financial services" means the provision of
insurance; issue, transfer, receipt of, or dealing
with money whether in domestic or foreign currency
or any note or order of payment of money; provision
of credit; or operation of a bank account or an
account with a similar institution;
"medical services" means a supply of a medical,
dental, nursing, midwifery or paramedical service
where the service is performed by or under the
supervision and control of a person who is
registered as being qualified to perform that
service by the Minister for Health, other than spa,
gymnasium and similar services; and
"medical supplies" means equipment and accessories
for the supply of medical services as determined by
the Minister responsible for Health.
3.
A supply of the following agricultural and aquatic
food products in a raw state produced in the country
(a)
maize;
(b)
sorghum;
(c)
millet;
(d)
tubers;
(e)
guinea com;
(f)
rice;
(g)
fish, other than ornamental fish;
(h)
crustaceans;
(i)
mollusks;
(J)vegetables
and fruits;
(k)
nuts;
(I)
coffee;
(m)
cocoa;
(n)
shea butter; and
(0)
edible meat and offal of the animals listed in item
4, provided that the processing is restricted to
salting, smoking or similar processes, but excluding
pate, fatty livers of geese and ducks, and similar
products.
4.
For the purposes of item 3, the agricultural and
aquatic food products shall be considered to be in
their raw state, even if they have undergone simple
preparation or preservation, including freezing,
chilling, drying, salting, smoking, stripping or
polishing.
5.
A supply of the following live animals bred or
raised in this country:
(a)
cattle;
(b) sheep;
(c) goat;
(d)
swine; and
(e) poultry.
6.A
supply of the following agricultural inputs
(a)
seeds, bulbs, rooting, and other forms of
propagation of edible fruits, nuts, cereal crops,
tubers and vegetables, including the seedlings and
cuttings; and
(b)
fertilizers, acaricides, insecticides, fungicides,
nematicides, herbicides, growth regulators,
pesticides, veterinary drugs and vaccines, feed and
feed ingredients other than food, drugs and vaccines
for domesticated animals generally held as pets.
7. (a)
A supply of gear designed exclusively for fishing,
including boats, nets, floats, twines, and hooks;
and
(b)
An import and supply of raw material for use in the
production of nets and twines and goods produced for
fishing.
8.
A supply of water, excluding water commonly supplied
in bottles or other packaging suitable for supply to
consumers.
9.
A supply to a dwelling of electricity up to a
maximum consumption level specified for block
charges for lifeline units.
10.
(1) A supply of textbooks and supplementary readers
on the Ministry of Education approved list,
newspapers, atlases, charts, maps and music; and
(2) The exemption in subsection (1) does not apply
to imported newspapers, architectural and similar
plans, and drawings, scientific and technical works,
periodicals, magazines, trade catalogues, price
lists, greeting cards, almanacs, calendars, diaries
and stationery.
11.A
supply of education services.
12.A
supply of laboratory and library equipment for use
in rendering
educational services.
13.A
supply of medical services and medical supplies:
14.A
supply of pharmaceuticals listed under Chapter 30 of
the '" Harmonised Systems Commodities Classification
Code, 2012, if the pharmaceutical is supplied by
retail in Ghana;
15.
A supply of domestic transportation of passengers by
road, rail, water, but not including the supply of
haulage or the rental or hiring of passenger and
other vehicles.
16.
A supply of machinery and parts of machinery
specifically designed for use in the following
activities:
(a)
agriculture, veterinary practice, fishing and
horticulture;
(b)
mining as specified in the mining list;
(c)
manufacturing;
(d)
railway and tramway;
(e)
upstream petroleum operations as specified in the
petroleum list; and
(f)
dredging.
17.
A supply of the following crude oil and hydrocarbon
products:
(a) petrol;
(b)
diesel;
(c)
liquefied petroleum gas;
(d) natural petroleum gas; and
(e) kerosene.
18.
A supply of the following:
(a)
immovable prcperty, including land, attributable to
a dwelling, but excluding the sale of immovable
property by an estate developer;
(b)
accommodation in a dwelling;
(c)
land used or to be used for agricultural purposes;
and
(d)
civil engineering public works, including roads and
bridges.
19.
A supply
(a)
subject to paragraph (b), of financial
services, excluding financial services rendered for
a fee, commission, or. a similar charge; and
(b)
of life insurance and reinsurance, whether or not
rendered for a fee, commission or a similar charge.
20.
A supply of goods designed exclusively for use by
persons with disability. .
21.
A supply of postage stamps issued by the Ghana Post,
other than for expedited services or for philatelist
purposes.
22.A
supply of salt for human consumption, including
table salt.
23.A
supply of mosquito nets, whether or not impregnated
with chemicals.
SECOND SCHEDULE
ZERO-RATED SUPPLIES
(Section 36)
1.
The supplies listed in this Schedule and defined in
this item are zero- rated supplies for purposes of
section 36.
(1) "Conveyance" means a ship, aircraft or a
vehicle.
(2) "Export country", in this Schedule, comprises
any country other than in this country and includes
any place which is not situated in this country.
(3) "Exports from this country," in relation to any
movable goods, means goods supplied by a registered
person under a sale or a credit agreement, subject
to item 3 of this
Schedule
(a)
consigned or delivered by the registered person to
the recipient at an address in an export country as
evidenced by documentary proof acceptable to the
Commissioner-General; or
(b)
delivered by the registered person to the owner or
charterer of a foreign-going aircraft or foreign-
going vessel when the aircraft or vessel is going to
a destination in an export country and the goods are
for use or consumption in the aircraft or vessel.
(4) "Foreign-going aircraft" refers to an aircraft
engaged in the transportation for reward of
passengers or goods wholly or mainly on flights
between an airport in Ghana and an
airport in an export country, or between airports in
export countries.
(5) "Foreign-going vessel" refers to a vessel
engaged in the transportation for reward of
passengers or goods wholly or mainly on voyages
between a seaport in Ghana and a
seaport in an export country, or between seaports in
export countries.
(6) "Free zone" means an area or building declared
as a, free zone under the Free Zone Act, 1995 (Act
504), and includes single factory zones, free port,
free airport, free river or free lake or port.
(7) "Free zone developer" means a person who
acquires a free zone area and is licensed for its
use or uses it for operations allowed under the Free
Zone Act, 1995 (Act 504).
(8) "Free zone enterprise" means an industry,
project, undertaking or business for commercial
purposes licensed to carry out operations in a free
zone under the Free Zone Act, 1995 (Act 504).
2. SUPPLY OF GOODS
(1) A supply of goods where the supplier has entered
the goods for export pursuant to the Customs Excise
and Preventive Service (Management) Act, 1993
(P.N.D.C.L. 330), and the goods have been exported
from the country by the supplier.
(2) A supply of goods where the Commissioner-General
is satisfied that the goods have been exported from
the country by the supplier without having been used
in the country after the supply was entered, except
as necessary for or incidental to, the export of the
goods.
(3) A supply of goods under a rental agreement,
charter party or agreement for chartering, where the
goods are used exclusively in an export country.
(4) Subject to item 4 of this Schedule, a supply of
goods shipped as stores on foreign-going vessels or
foreign-going aircraft leaving the territories of
Ghana and going to a destination in an export
country.
(5) A supply to a free zone developer or free zone
enterprise, provided that the developer or
enterprise provides satisfactory documentation that
its operations and the procedure for acquisition of
the supply satisfy the requirements of the Free Zone
Act, 1995 (Act 504).
(6) A supply of goods as part of the transfer of a
taxable activity as a going concern by one taxable
person to another taxable person, but only if
(a)
section 19 and subsection (5) of section 10 are
satisfied; and
(b)
the notices, including the details of the
transaction, required by regulations are provided to
the Commissioner-General.
(7) The Minister may, by Regulations, provide for
the zero-rating of exports of goods by tourists and
similar persons, under such terms and conditions as
the Minister shall specify.
(8) A supply of goods shall not be considered to be
exported from this country unless
(a)
immediately before being put on board the conveyance
for export, the goods are produced to the
Commissioner of Customs for examination;
(b)
on demand by the Commissioner of Customs, the
exporter provides samples of the goods as the
Commissioner may require for testing or in any other
purpose;
(c)
the person in charge of the conveyance for the
export or any other person that the person in charge
may authorise for the purpose, certifies on the
document on which the
goods are entered that the goods have been received
on board; and
(d)
particulars of the goods are included in the cargo
manifest of the conveyance.
(9) A supply of goods shall not be considered to be
exported from this country if the supply has been or
will be re-imported to this country by the
suppliers.
3. SUPPLY OF SERVICES
(1) A supply of services directly in connection with
land or any improvement to land situated outside the
country.
(2) A supply of services directly in respect of
personal property situated outside the country at
the time the services are rendered.
(3) A supply of services to the extent that the
services are consumed elsewhere than in the country.
(4) A supply of services comprising the filing,
prosecution, granting, maintenance, transfer,
assignment, licensing or enforcement of any
intellectual property rights for use outside the
country.
(5) A supply of freight and insurance directly
attributable to the export of goods.
THlRD SCHEDULE
EXEMPTIONS FOR RELIEF SUPPLIES
(Section 38)
1.
The President of the Republic.
2.Subject
to item 4, a supply for the official use of any
Commonwealth or Foreign Embassy, Mission or
Consulate.
3.Subject
to item 4, a supply for the use of a permanent
member of the Diplomatic Service of any Commonwealth
or foreign country that is exempted by Parliament
from the payment of customs duties.
4.The
relief provided in items 2 and 3 of this Schedule
applies only if a similar privilege is accorded by
the Commonwealth or foreign country to the Ghana
representative in that country.
5.A
supply for the use of an international agency, or
technical assistance scheme where the terms of
agreement made with the Government and approved by
Parliament include exemption from domestic indirect
taxes.
6.Emergency
relief items approved by Parliament.
7.VAT-registered
manufacturers for raw materials at importation,
subject to the condition that:
(i) the manufacturer is a member in good standing of
the Association of Ghana Industries;
(ii) the manufacturer has submitted all previous tax
returns and paid the tax, penalties and interest
from previous tax periods if any;
(iii) the Commissioner-General is satisfied that the
manufacturer has met the conditions in subparagraphs
(i) and (ii) of this paragraph and other compliance
requirements of this Act and has listed the
manufacturer in a register published by the
Commissioner-General with a validity period of
twelve months effective from 1st January of each
year;
(iv) the imported raw materials will be applied
solely and exclusively for the manufacturing
operations of the relief beneficiary.
1 Except as the Commissioner-General may otherwise
allow, a tax credit note required by subsection (6)
of section 45 or a tax debit note required by
subsection (4) of section 45, must contain at least
the following particulars:
(a)
the words "tax credit note" or where appropriate,
"tax debit note" in a prominent place;
(b)
a sequential identifying number;
(c)
the name, address and taxpayer identification number
of the registered person making the supply;
(d)
the name, address and taxpayer identification number
of the recipient of the supply;
(e)
the date on which the tax credit or tax debit was
issued;
(j)
the identifying number and date of issue of the tax
invoice relating to the supply;
(g)
the value of the supply shown on the applicable tax
invoice, the adjusted value of the supply or the
correct amount of the value of the supply, the
difference between those two amounts, and the tax
charged that relates to that difference;
(h)
a brief explanation of why the tax credit note or
tax debit note is being issued; and
(i)
information sufficient to identifying the taxable
supply to
which the tax credit note or tax debit note relates.
2.
Except as the Commissioner-General may otherwise
allow, a tax debit note required by subsection (4)
of section 45 must contain at least the following
particulars:
(a)
the words "tax debit note" in a prominent place;
(b)
a sequential identifying number;
(c)
the name, address and taxpayer identification number
of the registered person making the supply;
(d)
the name, address and taxpayer identification number
of the recipient of the supply;
(e)
the date on which the tax debit was issued;
(f)
the identifying number and date of issue of the tax
invoice relating to the supply;
FOURTH SCHEDULE
(Sections 45(4) and 45(6))
TAX CREDIT NOTE AND TAX DEBIT NOTE
(g)
the value of the supply shown On the applicable tax
invoice, the correct amount of the value of the
supply, the difference between those two amounts,
and the tax charged that relates to that difference;
(h)
a brief explanation of why the tax debit note is
being issued; and
(i)
information sufficient to identify the taxable
supply to which the tax debit note relates.
FIFTH SCHEDULE
APPORTIONMENT OF INPUT TAX
(Section 49(2))
For the purpose of determining the deductible input
tax under subsection (2) of section 49, the
following formula shall apply AxB/C
where A is the total amount of input tax for the
period that is not directly attributable to taxable
or exempt supplies;
B is the total amount of taxable supplies made by
the taxable person during the period; and
C is the total amount ofall supplies made by the
taxable person during the period.
(g)
the value of the supply shown on the applicable tax
invoice, the correct amount of the value of the
supply, the difference between those two amounts,
and the tax charged that relates to that difference;
(h)
a brief explanation of why the tax debit note is
being issued; and
(i)
information sufficient to identify the taxable
supply to which the tax debit note relates.
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