GRA and GUTA Reach Agreement on VAT Act 2025 Implementation

The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) have issued a joint communiqué following high-level consultations regarding the implementation of the new Value Added Tax (VAT) Act, 2025 (Act 1151).

The meeting, held on Wednesday at the GRA headquarters, sought to address mounting concerns from the trading community—particularly those previously operating under the VAT Flat Rate Scheme—about the transition to the new legislative framework.
Key Outcomes of the Consultation includes:
The dialogue resulted in a three-point agreement aimed at ensuring economic stability while maintaining tax compliance:
Standarddized Rate Application: All eligible taxpayers, including GUTA members, will charge and account for VAT at an effective rate of 20% (incorporating VAT, NHIL, and the GETFund Levy). This rate will remain in effect through the first quarter of implementation to allow for a stabilized rollout.
Establishment of a Joint Technical Team: A specialized task force featuring representatives from both the GRA and GUTA will be formed. This team is charged with resolving sector-specific hurdles, specifically regarding input VAT claims, record-keeping requirements, and calculation methods.
Nationwide Sensitization: The GRA committed to intensifying educational campaigns across the country. These programs are designed to provide practical guidance to traders navigating the transition from the Flat Rate Scheme to the new regime.
A Collaborative Path Forward
The Commissioner-General of the GRA reassured the business community that the Authority is adopting a supportive, rather than strictly punitive, stance during this transitional phase.
In response, the President of GUTA has urged members to comply with the new law, emphasizing that ongoing dialogue between the two bodies will prioritize the interests of traders, consumers, and the broader national economy.
Both organizations have pledged to keep communication channels open as the Joint Technical Team prepares its first round of recommendations.