VAT Service takes measures to consolidate tax

Accra, March 13, GNA - The Value Added Tax (VAT) Service on Monday said it has started a series of meetings with lotto operators and distillers of local gin as part of efforts to consolidate the tax.

Mr George Blankson, Deputy Commissioner of Operations, told the GNA in an interview that the programme is also meant to smoothen out rough edges in the second phase of the implementation of the tax.

The meetings will enable the Service to review the procedure by which the lotto operators and distillers charge the tax to ensure greater effectiveness of the new tax system.

Mr Blankson said prior to the meetings, the distillers charged prices below the normal market value of their products. As a result, the distillers under-declared the tax.

It is expected that after the meetings, the Service would exercise proper control and monitoring measures to be able to ensure that the distillers do not issue their own invoice and that they declare their actual turnovers.

Mr Blankson said it would also enable the Service to dialogue with the lotto operators and afford the latter the opportunity to appreciate the need for a change in their mode of operation.

Mr Blankson said the Service would among other issues discuss new guidelines with the lotto operators. The main thrust of the new guidelines is that all lotto operators must issue printed coupons from the VAT Service beginning from April one, this year.

"We expect them to comply with the rules voluntarily after our meetings with them." Mr Blankson explained that the new guidelines would eliminate illegal lotto operators in the industry due to their inability to issue VAT coupons to their customers.

He said the Service would offer incentives to customers who report both legal and illegal lotto operators who do not issue VAT coupons.