Audio By Carbonatix
The Chief Revenue Officer at the Domestic Tax Revenue Division of the Ghana Revenue Authority (GRA), Victor Yao Akogo, has clarified that Value Added Tax (VAT) is still payable on tickets given out for free, particularly by persons or businesses classified as taxable entities.
Speaking on JoyPrime’s 7th Edition of Showbiz Roundtable on Saturday, September 6, Mr Akogo emphasised that under Ghanaian tax law, once an individual or entity qualifies as a taxable person, they are obliged to account for VAT, even in instances where no payment is received for a product or service.
“The law is clear that even if you give a gift out to somebody, the fact that you are a taxable person, or an agent for government who has collected the taxes especially VAT means that the VAT must still be paid,” he said.
He explained that VAT is not a tax on the business itself, but rather a levy collected on behalf of the state, using the business or individual as an intermediary.
“The VAT is not your tax. It is an appeal that has been made through you - you have become the agent of the Ghana Revenue Authority. So, if you should give out a ticket to somebody for free, the VAT element of it ought to be paid,” he added.
He further clarified that while such complementary tickets may be given at no cost to the recipient, the VAT component of the ticket’s value must still be remitted to the GRA by the event organiser.
“You can give the ticket out as a complimentary gift — that is entirely up to you. But the VAT is not free,” he stressed.
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