Ghana Revenue Authority Launches Strategic Drive to Halve VAT Gap by 2028 Through Digital Transformation

The Ghana Revenue Authority (GRA) has unveiled an ambitious roadmap to significantly improve tax revenue collection, targeting a reduction in the Value Added Tax (VAT) gap from 60% to 30% by the end of 2028. Central to this objective is the newly launched VAT Strategic Plan and a nationwide VAT Compliance Campaign. Dr. Martin Kolbil Yamborigya, Commissioner for the Domestic Tax Revenue Division, emphasized that the initiative focuses on broadening the tax base and fostering a culture of voluntary compliance among businesses and citizens alike. The campaign represents a shift in strategy, moving away from immediate punitive measures toward a more engagement-led approach to address non-compliance. A cornerstone of this modernization effort is the introduction of the Integrated Tax Administration System (ITAS), a digital platform designed to streamline tax processes across the country. ITAS aims to unify various tax functions through features such as self-service account activation, automated workflows, and seamless integration with national databases. Beyond ITAS, the GRA is rolling out other digital initiatives including e-invoicing and the Sentinel project to enhance transparency. Dr. Yamborigya noted that these platforms are essential for improving data management and simplifying the taxpayer experience, though he reminded businesses that maintaining proper documentation remains critical for successful VAT refund claims. While the GRA intensifies its monitoring, the Ghana Union of Traders’ Associations (GUTA) has appealed for a balanced approach to enforcement. GUTA President Clement Boateng urged the tax authority to apply a human face during compliance visits, advocating for a friendly and accommodating demeanor from GRA officers. During the launch of the compliance campaign, Boateng stressed that cooperation between the state and the private sector is vital for success. He encouraged traders to comply with tax laws while simultaneously calling on the GRA to prioritize education, ensuring that both business owners and consumers fully understand the mechanics and benefits of the VAT system. The ongoing compliance visits, including recent exercises at high-traffic locations like the Accra Mall, have already identified gaps where businesses fail to issue VAT invoices consistently. Rather than applying harsh penalties immediately, the GRA is utilizing these encounters to educate vendors on their legal obligations. As the authority moves toward its 2028 goal, the synthesis of digital tools like ITAS and a more collaborative relationship with trade unions like GUTA is expected to create a more transparent and efficient fiscal environment. This strategic shift reflects a broader national commitment to using taxation as a sustainable engine for development.