GRA tightens VAT registration rule for firms above GHc750,000 turnover

The Ghana Revenue Authority has announced that companies conducting taxable activities with an annual turnover exceeding GHc750,000 are required to register for Value Added Tax. Acting Deputy Commissioner of Strategy, Research and Policy and Head of VAT Administration, Dr Dominic Naab, explained that the registration threshold is strictly based on turnover and not on the nature of the business. He made this known during an interview on Morning Starr with Isaac Addae on Starr FM. According to Dr Naab, once a firm crosses the GHc750,000 mark, it must proceed to register and obtain a VAT certificate from the Authority. He further noted that businesses operating below this threshold are not compelled to register solely because of their size. The GRA emphasized that advertised prices by VAT-registered entities should already include the tax, so consumers should not be charged an extra VAT amount at the point of purchase. Dr Naab urged shoppers to verify the VAT status of sellers and request proper VAT invoices where applicable. The clarification is part of a broader nationwide compliance drive designed to boost public awareness and improve adherence to tax obligations across the informal and formal sectors.