Pwc Tax Alert - Quick Fix To Avoid A VAT Assessment


Pwc Tax Alert - Quick Fix To Avoid A VAT Assessment

Dear GNBCC Member

Compliments of the New Year!

As the calendar year 2022 commences, we wish to inform you that in a bid to close revenue gaps and improve compliance with the tax laws, particularly Corporate Income Tax (CIT), Withholding taxes, Value Added Tax (VAT) with associated levies and withholding VAT (WHVAT), the Ghana Revenue Authority (GRA) as part of its audit procedures will require various financial disclosures to reconcile to tax returns submitted. As an example, sales declared on returns for VAT and associated levies are expected to reconcile with turnover/ revenue declared in the financial statements. Where variances are noted, the GRA will require an explanation together with supporting documentation in order not to charge either CIT or VAT to the variances at the relevant tax rates.

The reconciliation exercise would for instance require an evaluation of items that flow to the financial statements that do not necessarily fall within the ambit of VAT and vice versa as well as consideration of cut off periods depending on your company’s financial year end.

In addition, if you are a VAT withholding agent, the GRA would expect that the withheld VAT remitted to them reconciles with the 7% of the taxable value of standard rated input VAT incurred. Any variances would have to be explained.

As part of your organisation’s tax compliance procedures, we recommend that you perform periodic reconciliation whether on a monthly, quarterly or annual basis in order to capture and reconcile the gaps. This will ensure that any occurring variances are noted early on and where necessary, appropriate measures are taken to mitigate variances and unexpected sanctions.

We recommend that you take the above into consideration not only for the year 2022 and going forward but also consider performing reconciliation for the years 2021 and back. Should your company note any valid tax liabilities up to 31 December 2020, you can take advantage of the Penalty and Interest Waiver Program that has been extended to 30 June 2022.

How PwC can assist you with this

We are happy to organise a 30-minute call to discuss the reconciliation exercise, how to build a template fit for your business, how you can meet the compliance requirements and support with Penalty and Interest waiver application to the GRA where required.


If you wish to take up this 30-minute call opportunity, please send an

email to:

Abeku Gyan-Quansah:

Alexander Jnr. Yankson:

Lorna Onduu:

and we shall revert to you.


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