Ghana Revenue Authority Shuts Down China Mall For Refusal To Fix Electronic VAT System

• The Ghana Revenue Authority has, in a shock move, shut down the China Mall shopping centre
• Four branches of shopping centres located in the capital, Accra, were closed down after they refused to fix the electronic VAT system
• The GRA has embarked on an operation to get all businesses to migrate to the e-invoicing system, which allows its officials to monitor live transactions

Law enforcement officers from the Ghana Revenue Authority (GRA) have shut down four branches of the China Mall shopping centre in Accra.

The branches were alleged to be conducting business in violation of the Authority's e-invoicing system for Value Added Tax (VAT).

On October 1, 2022, the GRA made the e-invoicing system for VAT collectors available to 600 major taxpayers who account for more than 90% of VAT income.

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In moves to ensure strict compliance, its officers have, in the last few days, embarked on an operation to get all businesses to migrate to the electronic system, allowing its officials to monitor live transactions.

When the officials first visited the Spintex Road Branch of the China Mall Shopping Centre, they were not operating.

The Authority, however, suspected that the management of China Mall got wind of the information about the action.

Other branches shut down include the Spintex Road, Ashaiman and Amasaman branches.

Most Business Owners Have Failed To Comply With E-Invoicing VAT System - GRA

Speaking to state-owned Ghana News Agency, the Area Enforcement Manager of GRA in charge of Accra Central, Joseph Annan, lamented how most business owners had failed to comply with the directive.

He also shed more light on the decision to close down China Mall, saying when they got to the premises, the shops were not in operation, so “we only added the Commissioner-General’s Seal.”

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Even though it's only a Seal, he stated that any attempt to remove it would be illegal, and until they took the proper action, the location would remain closed.

“We will continue to pursue all who have failed to fix the system until they comply,” he added.

Contrary to the traditional system, the GRA's new e-invoicing system enables its officers to see real-time transactions in the businesses where it has been implemented from the comfort of their offices, making it difficult for taxpayers to file understated returns or avoid paying taxes.

Ghanaians Condemn Paul Adom Otchere As GRA Shuts Down Metro TV

Earlier in 2018, YEN.com.gh reported how Accra-based Metro TV was shut down by the GRA for failing to pay taxes accruing from the year 2014 to 2018, to the tune of GHc2.3 million.

Photos and a video of GRA officials closing down that station surfaced on social media, and this led to various comments from Ghanaians.

Source: YEN.com.gh