The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Associations (GUTA) have announced a joint effort to ensure a smooth transition following the implementation of the Value Added Tax Act, 2025 (Act 1151).

The announcement came after a high-level consultation meeting at GRA’s offices on Starlets 91’ Road, Accra, which brought together the Commissioner-General and senior GRA officials with GUTA executives.

The meeting focused on the impact of the new VAT legislation on traders, especially those previously under the VAT Flat Rate Scheme, and addressed key transitional challenges.

Key agreements from the meeting include:

• VAT at 20% for All Eligible Traders: Traders, including GUTA members, are required to charge and account for VAT at the effective rate of 20%, covering VAT, NHIL, and GETFund Levy, during the first quarter of implementation.

This approach will allow traders to adapt to the new system while GUTA provides feedback to GRA.

• Formation of a Joint Technical Team: A combined team from GRA and GUTA will tackle sector-specific issues, including VAT record keeping, input VAT claims, and calculations, and will provide recommendations for further review.

• Enhanced Education and Sensitisation: Both organisations will intensify nationwide education programmes to help traders navigate the transitional arrangements and comply with the new VAT system.

GRA reassured traders formerly on the VAT Flat Rate Scheme of its full support, while GUTA encouraged members to comply with the new law.

Both organisations reaffirmed their commitment to ongoing dialogue in the interest of traders, consumers, and national development.