The Ghana Revenue Authority (GRA) will gradually eliminate Value Added Tax (VAT) booklets as it implements Fiscal Electronic Devices and an electronic VAT (eVAT) system, ensuring businesses transition without operational disruption during 2026.
The Authority confirmed January 1 that manual VAT booklets will continue operating alongside digital systems until businesses complete preparations for the new framework under the Value Added Tax Act, 2025 (Act 1151). This measured approach addresses concerns that abrupt digitalization could overwhelm small and medium enterprises lacking automated accounting infrastructure.
Dominic Naab, Acting Head of the Strategy and Research Department at GRA, explained during a public engagement on VAT implementation that the eVAT system targets businesses already operating digital platforms. The system embeds Application Programming Interface (API) technology directly onto existing business platforms, allowing seamless connectivity between company systems and GRA databases for real time transaction monitoring.
Businesses without automated systems will use Fiscal Electronic Devices as their primary VAT administration tool. These certified cash registers or point of sale terminals link directly to GRA’s central system, automatically calculating and reporting VAT on each transaction. The devices transmit sales data immediately to tax authorities, creating digital audit trails intended to reduce manual invoicing errors and improve compliance accuracy.
The GRA established parallel compliance pathways to accommodate varying business capabilities. Companies with sophisticated accounting software will integrate eVAT through API connections. Those operating manually will receive Fiscal Electronic Devices for point of sale tax calculation. Businesses currently using VAT booklets will continue that method until infrastructure and training support complete transitions.
Naab stated the Authority would not withdraw booklets abruptly despite launching new digital systems. Businesses holding VAT flat rate booklets from the abolished scheme must return unutilized materials to the Commissioner General, though no immediate deadline applies for standard rate booklets still in circulation. This tolerance period aims to prevent compliance bottlenecks among informal and semi formal operators heavily reliant on manual record keeping.
The phased implementation reflects practical realities facing Ghana’s business environment. Approximately 78 percent of commercial activity operates informally or semi formally according to studies, with many enterprises lacking electricity reliability, internet connectivity, or technical capacity needed for electronic systems. Forcing immediate digitalization could trigger widespread non compliance and revenue losses.
Digital VAT systems support transparency improvements and long term compliance cost reductions. Electronic integration enables efficient reporting, strengthens audit trails, and reduces errors from manual processes. These factors can improve operational efficiency and enhance business access to financing by demonstrating verifiable transaction records to lenders.
The Taxation (Use of Fiscal Electronic Device) Act has existed since 2018, requiring specified taxpayers to use approved devices at sales points. Implementation remained limited until the 2026 budget authorized full enforcement. The GRA announced plans to fully implement the legislation early this year as part of comprehensive VAT reforms that reduced the standard rate from 21.9 percent to 20 percent effective January 1.
The Authority onboarded 2,000 VAT registered taxpayers during the second phase of electronic invoicing rollout, building on an initial pilot involving 600 businesses. Officials indicate the expansion will continue until all VAT registered entities operate on digital platforms, though timelines remain flexible to accommodate business readiness levels.
The GRA established multiple support channels for businesses navigating transitions. Taxpayer Service Centres across the country offer consultations, while toll free line 0800 900 110 provides telephone assistance. WhatsApp support operates on 055 299 0000 and 020 063 1664, with email support available through [email protected].
Implementation challenges extend beyond registration mechanics. Service providers previously operating informally must establish proper accounting systems, purchase invoicing software capable of generating VAT compliant receipts, maintain detailed transaction records, and file monthly returns through electronic platforms. These compliance costs including software, professional advice, and administrative time could exceed actual VAT liabilities for marginal operations.
Critics question whether mandatory digital requirements impose disproportionate burdens on informal sector operators lacking financial management expertise or record keeping systems. The GRA must balance aggressive compliance enforcement against practical challenges facing newly registered taxpayers adjusting to substantially different operational requirements.
Enforcement mechanisms remain under development as implementation proceeds. Taxpayers included in the expanded Fiscal Electronic Device mandate will face penalties for non-compliance when full implementation takes effect, though the Authority has not specified penalty structures or enforcement timelines. Whether Ghana’s digital tax transition achieves transparency and efficiency goals depends on execution effectiveness and the Authority’s capacity to support businesses through operational changes during 2026.