Value Added Tax Act, 2013 (Act 870) - Revision history

Oblitey at 21:09, 12 September 2024

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	:(6) '''"Free zone"''' means an area or building declared as a free zone under the Free Zone Act 1995 (Act 504), and includes single factory zones, free port, free airport, free river or free lake or port. :(7) '''"Free zone developer"''' means a person who acquires a free zone area and is licensed for its use or uses it for operations allowed under the Free Zone Act, 1995 (Act 504).		:(6) '''"Free zone"''' means an area or building declared as a free zone under the Free Zone Act 1995 (Act 504), and includes single factory zones, free port, free airport, free river or free lake or port. :(7) '''"Free zone developer"''' means a person who acquires a free zone area and is licensed for its use or uses it for operations allowed under the Free Zone Act, 1995 (Act 504).
	:(8) '''"Free zone enterprise"''' means an industry, project, undertaking or business for commercial purposes licensed to carry out operations in a free zone under the Free Zone Act, 1995 (Act 504).		:(8) '''"Free zone enterprise"''' means an industry, project, undertaking or business for commercial purposes licensed to carry out operations in a free zone under the Free Zone Act, 1995 (Act 504).


	'''2. SUPPLY OF GOODS'''		'''2. SUPPLY OF GOODS'''

Oblitey at 21:08, 12 September 2024

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Oblitey: /* FIFTH SCHEDULE - APPORTIONMENT OF INPUT TAX (Section 49(2)) */

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FIFTH SCHEDULE - APPORTIONMENT OF INPUT TAX (Section 49(2))

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	====FIFTH SCHEDULE - APPORTIONMENT OF INPUT TAX ''(Section 49(2))''====		====FIFTH SCHEDULE - APPORTIONMENT OF INPUT TAX ''(Section 49(2))''====
	For the purpose of determining the deductible input tax under subsection (2) of section 49, the following formula shall apply A x B/C where A is the total amount of input tax for the period that is not directly attributable to taxable or exempt supplies; B is the total amount of taxable supplies made by the taxable person during the period; and C is the total amount of all supplies made by the taxable person during the period.		For the purpose of determining the deductible input tax under subsection (2) of section 49, the following formula shall apply
			:A x B/C where
			::A is the total amount of input tax for the period that is not directly attributable to taxable or exempt supplies;
			::B is the total amount of taxable supplies made by the taxable person during the period; and
			::C is the total amount of all supplies made by the taxable person during the period.

	====SIXTH SCHEDULE - TRANSITIONAL PROVISIONS ''(Section 66)''====		====SIXTH SCHEDULE - TRANSITIONAL PROVISIONS ''(Section 66)''====

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SIXTH SCHEDULE - TRANSITIONAL PROVISIONS (Section 66)

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	\| 54 – \|\| Objection to decision of an officer other than the Commissioner-General		\| 54 – \|\| Objection to decision of an officer other than the Commissioner-General
	\|-		\|-
	\| 55 – \|\| Appeal to Court 56 – Failure to register		\| 55 – \|\| Appeal to Court
			\|-
			\| 56 – \|\| Failure to register
	\|-		\|-
	\| 58 – \|\| False or misleading statements		\| 58 – \|\| False or misleading statements

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SCHEDULES

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 . The relief provided in items 2 and 3 of this Schedule applies only if a similar privilege is accorded by the Commonwealth or foreign country to the Ghana representative in that country. 5. A supply for the use of an international agency, or technical assistance scheme where the terms of agreement made with the Government and approved by Parliament include exemption from domestic indirect taxes. 6. Emergency relief items approved by Parliament. 7. VAT-registered manufacturers for raw materials at importation, subject to the condition that: (i) the manufacturer is a member in good standing of the Association of Ghana Industries; (ii) the manufacturer has submitted all previous tax returns and paid the tax, penalties and interest from previous tax periods if any; (iii) the Commissioner-General is satisfied that the manufacturer has met the conditions in subparagraphs (i) and (ii) of this paragraph and other compliance requirements of this Act and has listed the manufacturer in a register published by the Commissioner-General with a validity period of twelve months effective from 1st January of each year;
 (iv) the imported raw materials will be applied solely and exclusively for the manufacturing operations of the relief beneficiary.
-FOURTH SCHEDULE (Sections 45(4) and 45(6)) TAX CREDIT NOTE AND TAX DEBIT NOTE Except as the Commissioner-General may otherwise allow, a tax credit note required by subsection (6) of section 45 or a tax debit note required by subsection (4) of section 45, must contain at least the following particulars: (a) the words “tax credit note” or where appropriate, “tax debit note” in a prominent place; (b) a sequential identifying number; (c) the name, address and taxpayer identification number of the registered person making the supply; (d) the name, address and taxpayer identification number of the recipient of the supply; (e) the date on which the tax credit or tax debit was issued; (f) the identifying number and date of issue of the tax invoice relating to the supply; (g) the value of the supply shown on the applicable tax invoice, the adjusted value of the supply or the correct amount of the value of the supply, the difference between those two amounts, and the tax charged that relates to that difference; (h) a brief explanation of why the tax credit note or tax debit note is being issued; and (i) information sufficient to identifying the taxable supply to which the tax credit note or tax debit note relates.
 FIFTH SCHEDULE APPORTIONMENT OF INPUT TAX (Section 49(2)) For the purpose of determining the deductible input tax under subsection (2) of section 49, the following formula shall apply A x B/C where A is the total amount of input tax for the period that is not directly attributable to taxable or exempt supplies; B is the total amount of taxable supplies made by the taxable person during the period; and C is the total amount of all supplies made by the taxable person during the period. SIXTH SCHEDULE TRANSITIONAL PROVISIONS (Section 66) Until the date a Tax Administration law administered by the Ghana Revenue Authority comes into force, the sections of the Value Added Tax Act, 1998 (Act 546) specified in this Schedule shall continue to have effect and any reference to Commissioner in these sections shall be a reference to “Commissioner-General” and a reference to Value Added Tax Service or “Service” shall be construed as a reference to Ghana Revenue Authority within the context of the Ghana Revenue Authority Act, 2009 (Act 791). Section Subject 29 – Records to be kept for purposes of the tax 32 – Payment of interest on outstanding tax 33 – Garnishment 34 – Distraint for liability 35 – Recovery in respect of a person under liquidation 54 – Objection to decision of an officer other than the Commissioner-General 55 – Appeal to Court 56 – Failure to register 58 – False or misleading statements 59 – Falsification and alteration of documents 61 – Failure to maintain proper records 62 – Obstruction of officer of the Service
+====FOURTH SCHEDULE - TAX CREDIT NOTE AND TAX DEBIT NOTE ''(Sections 45(4) and 45(6))''====
-– Offences relating to officers 64 – Protection of officers 65 – Relationship of the Service and other public services 66 – Taking of samples 67 – Power of inspection and warrants 69 – Provisions of information 70 – General penalty 71 – Penalty for unauthorised collection of the tax 72 – Compounding of offence 73 – Evidence in proceedings 74 – Regulations 75 – Directives and other powers of Commissioner-General
+ Except as the Commissioner-General may otherwise allow, a tax credit note required by subsection (6) of section 45 or a tax debit note required by subsection (4) of section 45, must contain at least the following particulars:

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FIRST SCHEDULE - EXEMPT SUPPLIES (Sections 35 and 37)

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Oblitey: /* FIRST SCHEDULE - EXEMPT SUPPLIES (Sections 35 and 37) */

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FIRST SCHEDULE - EXEMPT SUPPLIES (Sections 35 and 37)

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 ::(e) an institution established for the education or training of physically or mentally challenged persons;
 :'''"estate developer"''' means a commercial establishment engaged in the business of the construction and sale of immovable property;
-“financial services” means the provision of insurance; issue, transfer, receipt of, or dealing with money whether in domestic or foreign currency or any note or order of payment of money; provision of credit; or
+:'''"financial services"''' means the provision of insurance; issue, transfer, receipt of, or dealing with money whether in domestic or foreign currency or any note or order of payment of money; provision of credit; or operation of a bank account or an account with a similar institution;
+:'''"medical services"''' means a supply of a medical, dental, nursing, midwifery or paramedical service where the service is performed by or under the supervision and control of a person who is registered as being qualified to perform that service by the Minister for Health, other than spa, gymnasium and similar services; and
-operation of a bank account or an account with a similar institution; “medical services” means a supply of a medical, dental, nursing, midwifery or paramedical service where the service is performed by or under the supervision and control of a person who is registered as being qualified to perform that service by the Minister for Health, other than spa, gymnasium and similar services; and “medical supplies” means equipment and accessories for the supply of medical services as determined by the Minister responsible for Health. 3. A supply of the following agricultural and aquatic food products in a raw state produced in the country (a)maize; (b)sorghum; (c)millet; (d)tubers; (e)guinea corn; (f) rice; (g) fish, other than ornamental fish; (h)crustaceans; (i)mollusks; (j)vegetables and fruits; (k)nuts; (l)coffee; (m) cocoa;
+:'''"medical supplies"''' means equipment and accessories for the supply of medical services as determined by the Minister responsible for Health.
-(n)shea butter; and (o)edible meat and offal of the animals listed in item 4, provided that the processing is restricted to salting, smoking or similar processes, but excluding pate, fatty livers of geese and ducks, and similar products. 4. For the purposes of item 3, the agricultural and aquatic food products shall be considered to be in their raw state, even if they have undergone simple preparation or preservation, including freezing, chilling, drying, salting, smoking, stripping or polishing. 5. A supply of the following live animals bred or raised in this country: (a)cattle; (b)sheep; (c)goat; (d)swine; and (e)poultry. 6. A supply of the following agricultural inputs (a)seeds, bulbs, rooting, and other forms of propagation of edible fruits, nuts, cereal crops, tubers and vegetables, including the seedlings and cuttings; and (b) fertilizers, acaricides, insecticides, fungicides, nematicides, herbicides, growth regulators, pesticides, veterinary drugs and vaccines, feed and feed ingredients other than food, drugs and vaccines for domesticated animals generally held as pets.
+. A supply of the following agricultural and aquatic food products in a raw state produced in the country
+:(a) maize;
-. (a) A supply of gear designed exclusively for fishing, including boats, nets, floats, twines, and hooks; and (b) An import and supply of raw material for use in the production of nets and twines and goods produced for fishing. 8. A supply of water, excluding water commonly supplied in bottles or other packaging suitable for supply to consumers. 9. A supply to a dwelling of electricity up to a maximum consumption level specified for block charges for lifeline units. 10. (a) A supply of textbooks and supplementary readers on the Ministry of Education approved list, newspapers, atlases, charts, maps and music; and (b) The exemption in paragraph (a) does not apply to imported newspapers, architectural and similar plans, and drawings, scientific and technical works, periodicals, magazines, trade catalogues, price lists, greeting cards, almanacs, calendars, diaries and stationery. 11. A supply of education services. 12. A supply of laboratory and library equipment for use in rendering educational services. 13. A supply of medical services and medical supplies. 14. A supply of pharmaceuticals listed under Chapter 30 of the Harmonised Systems Commodities Classification Code, 2012, if the pharmaceutical is supplied by retail in Ghana;
+:(b) sorghum;
+:(c) millet;
-. A supply of domestic transportation of passengers by road, rail, water, but not including the supply of haulage or the rental or hiring of passenger and other vehicles. 16. A supply of machinery and parts of machinery specifically designed for use in the following activities: (a)agriculture, veterinary practice, fishing and horticulture; (b)mining as specified in the mining list; (c)manufacturing; (d)railway and tramway; (e)upstream petroleum operations as specified in the petroleum list; and (f)dredging. 17. A supply of the following crude oil and hydrocarbon products: (a) petrol; (b) diesel; (c) liquefied petroleum gas; (d) natural petroleum gas; and (e) kerosene. 18. A supply of the following: (a)immovable property, including land, attributable to a dwelling, but excluding the sale of immovable property by an estate developer; (b)accommodation in a dwelling; (c)land used or to be used for agricultural purposes; and
+:(d) tubers;
 (d)civil engineering public works, including roads and bridges. 19. A supply of (a)subject to paragraph (b), financial services, excluding financial services rendered for a fee, commission, or a similar charge; and (b)life insurance and reinsurance, whether or not rendered for a fee, commission or a similar charge. 20. A supply of goods designed exclusively for use by persons with disability. 21. A supply of postage stamps issued by the Ghana Post, other than for expedited services or for philatelist purposes. 22. A supply of salt for human consumption, including table salt. 23. A supply of mosquito nets, whether or not impregnated with chemicals. SECOND SCHEDULE ZERO-RATED SUPPLIES (Section 36) 1. The supplies listed in this Schedule and defined in this item are zero-rated supplies for purposes of section 36. (1) “Conveyance” means a ship, aircraft or a vehicle. (2) “Export country”, in this Schedule, comprises any country other than in this country and includes any place which is not situated in this country. (3) “Exports from this country,” in relation to any movable goods, means goods supplied by a registered person under a sale or a credit agreement, subject to item 3 of this Schedule

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FIRST SCHEDULE - EXEMPT SUPPLIES (Sections 35 and 37)

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	====FIRST SCHEDULE - EXEMPT SUPPLIES ''(Sections 35 and 37)''====		====FIRST SCHEDULE - EXEMPT SUPPLIES ''(Sections 35 and 37)''====
	~~Item1~~. Except as otherwise provided, the supplies specified in this Schedule are exempt supplies for the purposes of sections 35 and 37. 2. For the purposes of this Schedule, the following definitions apply: “ commercial rental ~~establishment”~~ means (a) accommodation in a hotel, motel, inn, boarding house, guest house, hostel or similar establishment in which lodging is regularly or normally provided to five of more persons on a daily, weekly, monthly, or other periodic charge;
	(b)accommodation in a house, flat, apartment, or room, other than an accommodation in		1. Except as otherwise provided, the supplies specified in this Schedule are exempt supplies for the purposes of sections 35 and 37.
	40
	respect of which the provisions of paragraph (a) or(c) of the definition apply (i) which is regularly or systematically leased or held for lease as residential accommodation for continuous periods of not more than forty-five days in the case of each occupant of the house, flat, apartment or room; or (ii) which is leased with utilities and furnishings provided by the lessor; (c)accommodation in a house, flat, apartment, room, caravan, houseboat, tent or caravan or camping site which constitutes an asset, including a leased asset of a business undertaking or a separately identifiable part of a business undertaking carried on by a person who (i) leases or holds for leasing as residential accommodation, a house, flat, apartment, room, caravan, houseboat, caravan or camping site in the course of the business undertaking; and		2. For the purposes of this Schedule, the following definitions apply:
	(ii) regularly or normally leases or holds for lease as residential accommodation, the house, flat, apartment, room, caravan, houseboat, caravan or camping site for continuous		:'''"commercial rental establishment"''' means
	41		::(a) accommodation in a hotel, motel, inn, boarding house, guest house, hostel or similar establishment in which lodging is regularly or normally provided to five of more persons on a daily, weekly, monthly, or other periodic charge;
	periods of not more than forty-five days in the case of each occupant; or (d)any other accommodation designated by the Minister by Regulations to be a commercial rental establishment other than the accommodation specified under paragraphs (e), (f) and (g); (e)accommodation in a boarding establishment or hostel operated by any employer solely or mainly for the benefit of the employees of that employer or of a related person of that employer or their dependants, if the establishment or hostel is not operated for the purpose of making profits from the establishment or hostel for the employer or a person related to the employer; (f) accommodation in a boarding establishment or hostel operated by a local authority or an educational establishment approved by the Minister for Education otherwise than for the purpose of making profits from the establishment or hostel; or (g)accommodation in a registered hospital, maternity home, nursing home, or clinic.		::(b)accommodation in a house, flat, apartment, or room, other than an accommodation in respect of which the provisions of paragraph (a) or (c) of the definition apply
	~~“dwelling”~~ means any building, premises, structure or any place or any part of these which is not a commercial rental establishment and which is used predominantly as a place of residence or abode of a natural person or which is intended for		:::(i) which is regularly or systematically leased or held for lease as residential accommodation for continuous periods of not more than forty-five days in the case of each occupant of the house, flat, apartment or room; or
	42		:::(ii) which is leased with utilities and furnishings provided by the lessor;
	use as a place of residence or abode of a natural person, together with any appurtenances belonging to the place and enjoyed with the place; ~~“education services”~~ means the services supplied to students as part of the education program provided by any one of the following establishments that is duly registered or licensed by the Minister for Education (a) a day care, including adult day care, provider; (b)a pre-primary, primary, or secondary school; (c)a technical college, community college or university; (d)an educational institution established for the promotion of adult education, vocational training or technical education; or (e)an institution established for the education or training of physically or mentally challenged persons; ~~“estate developer”~~ means a commercial establishment engaged in the business of the construction and sale of immovable property;		::(c) accommodation in a house, flat, apartment, room, caravan, houseboat, tent or caravan or camping site which constitutes an asset, including a leased asset of a business undertaking or a separately identifiable part of a business undertaking carried on by a person who
			:::(i) leases or holds for leasing as residential accommodation, a house, flat, apartment, room, caravan, houseboat, caravan or camping site in the course of the business undertaking; and
			:::(ii) regularly or normally leases or holds for lease as residential accommodation, the house, flat, apartment, room, caravan, houseboat, caravan or camping site for continuous periods of not more than forty-five days in the case of each occupant; or
			::(d) any other accommodation designated by the Minister by Regulations to be a commercial rental establishment other than the accommodation specified under paragraphs (e), (f) and (g);
			::(e) accommodation in a boarding establishment or hostel operated by any employer solely or mainly for the benefit of the employees of that employer or of a related person of that employer or their dependants, if the establishment or hostel is not operated for the purpose of making profits from the establishment or hostel for the employer or a person related to the employer;
			::(f) accommodation in a boarding establishment or hostel operated by a local authority or an educational establishment approved by the Minister for Education otherwise than for the purpose of making profits from the establishment or hostel; or
			::(g) accommodation in a registered hospital, maternity home, nursing home, or clinic.
			:'''"dwelling"''' means any building, premises, structure or any place or any part of these which is not a commercial rental establishment and which is used predominantly as a place of residence or abode of a natural person or which is intended for use as a place of residence or abode of a natural person, together with any appurtenances belonging to the place and enjoyed with the place;
			:'''"education services"''' means the services supplied to students as part of the education program provided by any one of the following establishments that is duly registered or licensed by the Minister for Education
			::(a) a day care, including adult day care, provider;
			::(b) a pre-primary, primary, or secondary school;
			::(c) a technical college, community college or university;
			::(d) an educational institution established for the promotion of adult education, vocational training or technical education; or
			::(e) an institution established for the education or training of physically or mentally challenged persons;
			:'''"estate developer"''' means a commercial establishment engaged in the business of the construction and sale of immovable property;
	“financial services” means the provision of insurance; issue, transfer, receipt of, or dealing with money whether in domestic or foreign currency or any note or order of payment of money; provision of credit; or		“financial services” means the provision of insurance; issue, transfer, receipt of, or dealing with money whether in domestic or foreign currency or any note or order of payment of money; provision of credit; or
	43		43

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	:(a) issues a false tax invoice or sales receipt,		:(a) issues a false tax invoice or sales receipt,
	:(b) uses a false taxpayer identification number, or		:(b) uses a false taxpayer identification number, or
	:(c) fails to issue a tax invoice or sales receipt as required under subsection (1) or (3), is in addition to the penalty provided in section 58 liable to pay a penalty of an amount not more than five hundred currency points or three times the amount of tax involved, whichever is higher.		:(c) fails to issue a tax invoice or sales receipt as required under subsection (1) or (3),
			is in addition to the penalty provided in section 58 liable to pay a penalty of an amount not more than five hundred currency points or three times the amount of tax involved, whichever is higher.


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	(4) Where it is difficult under the rules in this Act for taxable persons in certain industries to calculate their tax liability, the Minister may, by legislative instrument, make Regulations to prescribe the method by which those persons shall account for their taxable activity and calculate their tax payable.		(4) Where it is difficult under the rules in this Act for taxable persons in certain industries to calculate their tax liability, the Minister may, by legislative instrument, make Regulations to prescribe the method by which those persons shall account for their taxable activity and calculate their tax payable.


	====48. Deductible input tax====		====48. Deductible input tax====
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	====45. Repeal, revocation, savings and transitional provisions====		====66. Repeal, revocation, savings and transitional provisions====
	(1) The following enactments are hereby repealed:		(1) The following enactments are hereby repealed:
	:(a) the Value Added Tax Act, 1998 (Act 546);		:(a) the Value Added Tax Act, 1998 (Act 546);

Oblitey at 21:12, 11 September 2024

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← Older revision		Revision as of 23:12, 11 September 2024
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	:'''"Value Added Tax"''' means the tax imposed under this Act, and includes any amount to the extent that it is treated as tax for purposes of this Act; and		:'''"Value Added Tax"''' means the tax imposed under this Act, and includes any amount to the extent that it is treated as tax for purposes of this Act; and
	:'''"VAT"''' means Value Added Tax.		:'''"VAT"''' means Value Added Tax.


	====45. Repeal, revocation, savings and transitional provisions====		====45. Repeal, revocation, savings and transitional provisions====