FOURTH REPUBLIC
Act 734
THE SEVEN
HUNDRED AND THIRTY-FOURTH
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
VALUE ADDED TAX
(AMENDMENT) ACT, 2007
AN ACT to amend the
Value Added Tax Act, 1998 (Act 546) in order to give
legal backing to a Flat Rate VAT SCHEME that will
facilitate VAT collection in the informal retail
distribution trade sector and to provide for related
purposes.
DATE OF ASSENT:
18th May, 2007 ENACTED by the President and
Parliament:
Section 24 of Act
546 amended
1. The Value Added
Tax Act, 1998 (Act 546) as amended and referred to
in this Act as the principal enactment is further
amended in subsection 24 by the insertion after
subsection (6) of subsection (6a)
"(6a)
A taxable
person to whom subsection (2) of section 3 applies
does not qualify for input tax deduction or tax
credit".
Section 3 of Act
546 amended
2. The principal
enactment is amended in section 3 by the insertion
of subsection (2).
"(2) Unless
otherwise directed by the Commissioner in writing, a
taxable person who is a retailer of goods shall
account for the Value Added Tax payable under this
section at a flat rate of3% calculated on the value
of the taxable supply".
Section 76
of Ad 546 amended
3. The principal
enactment is amended by the insertion after the
inter retention of ‘VAT'' of "VAT Flat Rate Scheme"
means a Value Added Tax collection and accounting
mechanism that applies a marginal tax percentage
representing net VAT payable on the value of taxable
goods supplied."
Date of Gazette
notification: . 24th May, 2007
GOVERNMENT PRINTER,
ASSEMBLY PRESS, ACCRA. GPC/184/300/4/2007
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