The Revenue Authority deemed it crucial to engage freight forwarders on the nuances of these tax laws due to the indispensable role the freight forwarders play as intermediaries between state actors and traders at the point of clearance of goods at the various ports of entry.
They were sensitized on the 12.5% Upfront VAT payment and the Growth and Sustainability Levy Act.
The GRA beginning June 6 of this year began the imposition of 12.5% on the customs value of taxable goods at all ports of entry, imported by persons who are required by law to register for VAT, in addition to import duties and taxes.
A Chief Revenue Officer at the Community 9 Tax Payer Center, Kwame Adu Kwakye emphasized that this is not a new tax, but a compliance tool.
“The good thing about this compliance measure is if you register with us and you have paid already, you have an opportunity to recover the tax once you register the VAT. If you are not even supposed to pay the 12.5% because probably the commodity you have imported is a personal commodity, is a personal use and not for sale then you can apply for a waiver even before your container lands at the port for clearance,” he said.
A Principal Revenue Officer at the Tema Community 1 Taxpayer Service Center, Stephen Baffour Gyau also revealed that the Growth and Sustainability Levy is a new tax aimed at shoring up government coffers for national development.
“The levy is not operating as the upfront VAT.
The levy is on your profit before tax that is why I said we will project in the beginning of the year so latest by the time that the first payment is due profit is due,” he averred.
Source: Eye on Port
