GRA partially seals Kitea shop, four others over eVAT non-compliance

The Ghana Revenue Authority (GRA) has partially sealed Kitea Furniture and Decoration for failing to fully comply with the Electronic Value Added Tax (eVAT) system during an enforcement exercise in Accra.

Kitea, which is required to operate on the eVAT platform, reportedly cited technical challenges as a reason for its inability to comply.

Joseph Annan Adjeikwei, Assistant Commissioner in Charge of the Accra Area Enforcement Unit, GRA said the team had no option but to enforce the law.

“I am an enforcer and a man under instructions. What I am asked to do is what I do,” he said.

He explained that due to the challenges presented, the GRA opted for a partial seal-off, visible at the premises, and gave the company up to the close of day Friday to rectify the irregularities or face a full seal-off.

Earlier, the enforcement team had visited four other companies as part of its mandate to ensure VAT compliance and proper record-keeping.

At Aiven Plastics at Abofu, Achimota, the business sells plastic plates but, the team detected selective issuance of receipts and the absence of records.

Mr Annan said the owner, believed to be a Chinese national, had been invited to the GRA office, where CID officers will handle the case, cautioning businesses against concealing records.

“When we come and you hide your records, your problems will multiply. If I project, the figures will be so high that you will not be able to pay,” he added.

At Metalex in Alajo, the team confirmed the issuance of receipts, however, management claimed that the Alajo premises served only as a manufacturing site, explaining that all invoicing was done at their Spintex branch.

Mr Annan said the GRA would conduct a follow-up visit to the Spintex facility to verify full compliance.

The Assistant Commissioner said at Inter Africa, which was expected to be fully operating on the eVAT platform, was found to be under-declaring sales.

He said the company had been invited for further investigation after officers verified the discrepancy using their system.

At Sky Wonderland, the team observed that even though the company claimed to be registered under eVAT, they were not issuing eVAT invoices.

He said the business claimed they were told to sell first and later purchase invoices when available, an explanation he rejected.

“The GRA has collected their records for preemptive tax assessment, and the company will be required to obtain the correct invoice systems immediately,” he added.

Annan stressed many businesses deliberately refused to provide records, adding that aside from projections, legal sanctions also await offenders who fail to comply.

The exercise forms part of the GRA’s continuous efforts to enforce tax compliance, enhance revenue mobilisation, and curb under-declaration across the country.

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