The Ghana Revenue Authority (GRA) is cautioning all importers who qualify to register for Value Added Tax (VAT) but have failed to do so will be charged an additional 12.5% on the customs value of taxable goods they import, from June 6, 2023.

This follows the implementation of the Upfront Payment Policy.

According to the GRA, the upfront payment is charged at importation on taxable goods imported in commercial quantities with a value of ¢200,000 and above.

It explained that the Upfront Payment Policy is not a new tax, but a compliance tool to encourage persons required to register for VAT to register and file returns.

This is to help bring parity in the administration of VAT.

If continued that importers who make the upfront payment may be allowed to recover the amount when the register and file their VAT returns as stated in Act 1082.

It therefore entreated all importers who qualify to register for VAT to make arrangements to register at the nearest Taxpayer Service Center to avoid the upfront payment.