VALUE ADDED TAX (AMENDMENT) ACT, 2015 ACT 890
ARRANGEMENT OF SECTIONS
Section
1.Section
3 of Act 870 amended
2.Section
48 of Act 870 amended
3.Section
57 of Act 870 amended
4.Section
65 of Act 870 amended
5.Section
66 of Act 870 amended
6.First
Schedule to Act 870 amended
THE EIGHT HUNDRED AND NINETIETH
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
VALUE ADDED TAX (AMENDMENT) ACT, 2015
AN ACT to amend the Value Added Tax Act, 2013 (Act
870) to introduce a flat rate mechanism for
accounting for tax payable for the supply of
immovable property by estate developers to establish
Ghana Revenue Authority General Refund Account; to
exempt pharmaceuticals and selected active
ingredients and inputs for the manufacture of
pharmaceuticals, paper for the production of
exercise books and textbooks and mild carbon steel
for the manufacture of machetes from the tax and to
provide for related matters.
DATE OF ASSENT:
10th April, 2015.
PASSED by Parliament and assented to by the
President:
Section 3 of Act 870 amended
1. The Value Added Tax Act, 2013 (Act 870) referred
to in this Act as the "principal enactment" is
amended by the substitution for section 3 of
"Rate of the tax
3. (1) Except as otherwise provided in this Act, the
rate of the tax is fifteen per cent and is
calculated on
(a)
the value of the taxable supply of the goods or
services; or
(b)
the taxable value of the import.
(2) Where a taxable person who is an estate
developer makes a taxable supply of an immovable
property, that person shall account for the tax
payable under this section at a flat rate of five
per cent calculated on the value of the taxable
supply."
Section 48 of Act 870 amended
2. The principal enactment is amended in section 48
(a)
by the substitution for subsection (7) of
"(7) A taxable person does not qualify for
deductible input tax on fees or subscriptions paid
by that person in respect of membership of a club,
association, or society of a
sporting, social or recreational nature."; and
(b)
by the insertion after subsection (7) of
"(7 A) A taxable person to whom subsection (2) of
section 3 applies does not qualify for an input tax
deduction in respect of a supply of immovable
property."
Section 57 of Act 870 amended
3. The principal enactment is amended by the
substitution for section
57 of
"Ghana Revenue Authority General Refund Account
57. (1) The Minister shall set aside an amount of
not more than four percent of the total revenue
collected under this Act and any other enactment
administered by the
Commissioner-General, in an account designated as
the "Ghana Revenue Authority General Refund
Account".
(2) The Ghana Revenue Authority General Refund
Account shall be used by the Commissioner-General to
make payments for
(a)
refunds due under this Act; and
(b)
refunds due under any other enactment administered
by the Commissioner-General.
(3) Where at the end of a calendar year there is an
amount outstanding as credit in the Ghana Revenue
Authority General Refund
Account after refunds certified by the
Commissioner-General have been paid, the outstanding
amount shall be paid into the Consolidated Fund by
the Commissioner-General in accordance with the
Financial Administration Act, 2003 (Act 654) and the
Financial Administration Regulations, 2004 (L.l.
1802).".
Section 65 of Act 870 amended
4.
The principal enactment is amended in section 65 by
the substitution for the definition of currency
point of
""currency point" means one Ghana Cedi;".
Section 66 of Act 870 amended
5.
The principal enactment is amended in section 66 by
the insertion after subsection (1) of a new
subsection (1A).
"(lA). Subsection (7) of section 159 of the Internal
Revenue
Act, 2000,Act 592) is repealed.".
First Schedule to Act 870 amended
6.
The First Schedule to the principal enactment is
amended
(a)
in paragraph 2 by the insertion after "medical
supplies" of "pharmaceuticals" means the essential
drugs listed under chapter 30 of the Harmonised
Systems Commodities
Classification Code, 2012";
(b)
by the substitution for paragraph 14 of
"14. (1) A supply of pharmaceuticals in Ghana;
(2) A supply or import of the active ingredients and
selected inputs for the manufacture of
pharmaceuticals as determined by the Minister for
Health and prescribed in Regulations; and
(3) An import of selected drugs or pharmaceuticals
as determined by the Minister for Health and
prescribed in Regulations. ";
(c)
by the addition after paragraph 23 of "24. A supply
of paper for the production of exercise books and
textbooks.
25. An import of mild carbon steel for the
manufacture of machetes. " .
Date of Gazette notification: 15th April,
2015.
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