Value Added Tax (Amendment) Act, 2021 (Act 1072)

ARRANGEMENT OF SECTIONS

1. Section 3 of Act 870 amended

2. Second Schedule to Act 870 amended

LONG TITLE

AN ACT to amend the Value Added Tax Act, 2013 (Act 870) to limit the application of the flat rate to a retailer with a turnover not exceeding five hundred thousand Ghana Cedis per annum and extend the Value Added Tax zero-rate on African textile prints for local textile manufacturers by a period of two years.

DATE OF ASSENT

30th December, 2021.

ACT

1. Section 3 of Act 870 amended

The Value Added Tax Act, 2013 (Act 870), referred to in this Act as the "principal enactment", is amended in section 3 by the substitution for subsection (2), of

"(2) Unless otherwise directed by the Commissioner-General, in writing, a taxable person who

(a) is a retailer of goods, and

(b) makes at the end of any period of twelve months, a taxable supply not less than two hundred thousand Ghana Cedis but not exceeding five hundred thousand Ghana Cedis

shall account for the Value Added Tax payable under this section at a flat rate of three per cent calculated on the value of the taxable supply.".

2. Second Schedule to Act 870 amended

The Second Schedule to the principal enactment is amended in paragraph 2 by the substitution for subparagraph (10), of

"(10) A supply of locally manufactured textiles up to 31st December, 2023 by a local manufacturer who has been approved by the Minister responsible for Trade and Industry.".