The Act has amended the Value Added Tax Act, 2013, (Act 870) (the VAT Act) to limit the application of the flat rate to a retailer with turnover not exceeding GHS500,000 annually and extended the VAT zero-rate on African textile prints for local textile manufacturers for a period of two years.
The Act provides that a taxable person who is a retailer of goods and makes at the end of any 12 months, a taxable supply not less than GHS200,000 but not exceeding GHS500,000 to account for the VAT payable at a flat rate of 3% calculated on the value of the taxable supply unless otherwise directed by the Commissioner-General (CG) of Ghana Revenue Authority (GRA) in writing.
The Second Schedule to the VAT Act has been amended in Paragraph 2 to recognize a supply of locally manufactured textiles up to 31 December 2023 by a local manufacturer who has been approved by the Minister responsible for Trade and Industry as a zero-rated supply.
Source EY
