VAT Service urges support for Flat rate Scheme

Accra, May 14, GNA - The Value Added Tax Service has urged members of trade associations to collaborate with it to ensure smooth implementation of the flat rate scheme. They could do this by encouraging their members, who are qualified under the scheme, to register and charge the rate to enable the government to generate revenue.

The scheme, introduced by the Service allows retail traders to charge a flat VAT rate of three per cent on their transactions. Speaking at the monthly meeting of the Accra Regional Chamber of Commerce and Industry, Mr David Lartey-Quarcoopome, a Training Officer of the VAT Service, said identifying and registering retail traders to join the scheme was one of the key challenges facing the Service.

It is, therefore, necessary for trade associations to encourage their members to embrace the scheme for the collective good of Ghanaians. He said the Service introduced the scheme to ensure equity and get as many people into the tax net. It is also to simplify collection and accounting for the VAT and National Health Insurance Law (NHIL), reduce the compliance costs as well as computation difficulties associated with the standard VAT. Mr. Lartey-Quarcoopome said research so far indicated a high rate of acceptance of the scheme among retail traders, leading to an increase in the tax base of VAT. He appealed to VAT registered traders to seek assistance from the Service in case of any difficulty in filing their returns. 14 May 08