Businesses in Ghana generating annual taxable turnover above GH¢750,000 have no legal escape from VAT registration — and the Ghana Revenue Authority is making that very clear.
Dr Martin Kolbil Yamborigya, the Commissioner of Domestic Tax Revenue at the GRA, delivered a pointed warning on Tuesday, September 15, on Joy FM's Super Morning Show: businesses that refuse to register are still considered registered under the law and remain fully liable to charge and remit the tax.
"Once you make taxable sales or taxable turnover exceeding GH¢750,000, you are required to register. Even if you refuse to register, by law, we still consider you registered and liable to charge the tax," Dr Yamborigya stated.
The directive is grounded in the Value Added Tax Act, 2025 (Act 1151), the latest legislative framework governing VAT compliance in Ghana. Businesses engaged in taxable activities that cross the prescribed threshold are legally obligated to register, charge VAT on qualifying transactions, and issue Commissioner-approved VAT invoices.
Non-Compliance Could Cost More Than the Tax Itself
Dr Yamborigya was direct about the financial risk businesses face when they sidestep registration. Firms that fail to register could be forced to pay taxes they were supposed to collect on behalf of the government — out of their own pockets. Add penalties and accrued interest to that, and the cost of non-compliance quickly becomes steeper than simply registering.
He described the GRA's current stance as education-first, but stressed that deliberate avoidance will eventually trigger enforcement measures. The Authority is not just sending letters — officials will physically visit selected business premises across Ghana to inspect registration status, invoicing practices, and overall tax compliance.
The GRA will also check whether businesses are charging the correct rate and issuing only invoices that carry the Commissioner's approval. This kind of on-the-ground verification is part of a broader VAT education and compliance campaign the Authority has launched under Act 1151.
Consumers Have a Role to Play Too
Dr Yamborigya did not limit his message to businesses. He called on Ghanaian consumers to actively support the campaign by demanding proper VAT invoices every time they make a purchase — whether for goods or services.
"Any time you buy something from somebody, whether it is goods or services, always insist on your VAT invoice first," he advised.
It is a simple but powerful accountability lever. When consumers demand invoices, businesses are effectively compelled to stay compliant — making ordinary Ghanaians an informal check on the system.
What This Means for Ghana's Tax Base
Ghana's tax compliance environment has long struggled with a wide informal economy and patchy enforcement. The GRA's renewed push under Act 1151 signals a more structured approach — combining public education with physical compliance checks and, where necessary, legal action.
The focus on both business-side registration and consumer-side invoice culture suggests the Authority wants compliance baked into everyday commercial transactions, not just enforced after the fact. Whether that ambition translates into results will depend heavily on how consistently the GRA's field visits are carried out in the months ahead.