1. Presentation By: Iris Botchway & Edwin Acheampong 12/5/2018
THE EFFECTIVE IMPLEMENTATION OF ELECTRONIC FISCAL DEVICES (EFDs) AND THEIR IMPACT ON VAT ADMINISTRATION IN GHANA
Presentation By:
Iris Botchway & Edwin Acheampong
12/5/2018

2. INTRODUCTION

3. Introduction…
The Electronic Cash Registers (ECRs) were first introduced on a Pilot Basis in the Accra Commercial Districts in September, 2009 but had to be discontinued nine months later

4. CHALLENGES WITH ECRs

5. Challenges with ECRs Poor data connectivity in some geographical areas
Slow terminal initialization
Till receipts issued from terminals were not recognised and accepted by the trading public

6. Challenges with ECRs
Traders refused to participate after a while because rival competitors not included in the pilot which was voluntary
Staff Support were inadequate as Staff considered their roles in the ECR implementation as periphery to their normal schedules
There was no legislation backing the piloting of the ECRs

7. Challenges with ECRs
The operation of the ECR was sole sourced, which affected the effectiveness of the project
The SIM card in the ECRs could be used for a phone and some taxpayers used them as such
The ECRs were not well taken care of by the traders

8. GOVERNMENT POLICY STATEMENT

9. Government Policy Statement
The government of Ghana is committed to introducing the Fiscal Electronic Device (FED) by the end of October, 2018

10. PREPARATIONS SO FAR…

11. Preparations so far
There is a local consultant to see to the smooth implementation of the FED
Study tours were made to Fiscal countries in Africa, namely; Rwanda, Kenya, Tanzania and Malawi to learn from their operations
The Taxation (Use of Fiscal Electronic Device) Act, 2018 (Act 966) has been passed. Date of Presidential Assent: 4th May 2018

12. Preparations so far…
Staff of Ghana Revenue Authority were sensitized on FEDs
A separate Unit will be established to operate the FED with a defined organogram and staff
An Implementation Committee has been set up to sensitize and educate the public through adverts, radio and TV programmes, jingles, etc.

13. HOW THE LAW WILL BE IMPLEMENTED

14. How the law will be implemented
The first batch of taxpayers to use the FEDs will be taxpayers of the Large Taxpayer Office (LTO)
It is envisaged that after 3 months, the next users of the FEDs will be Medium Taxpayers
…And finally, Small Taxpayers

15. How the law will be implemented…
For the moment, it is restricted to VAT- registered taxpayers

16. CONCLUSION

17. Conclusion
Implementation of the FED will be a turning point in VAT administration for GRA:
VAT Revenue Collection is expected to improve significantly –
Minimal or elimination of parallel invoicing
Real time monitoring of sales trends of VAT-registered taxpayers
Access to accurate record of the volume of sales of each taxable person
VAT Enforcement and Compliance Management will improve –
Record keeping is expected to improve among wholesalers and retailers

18. Conclusion… Critical sections of Act 966: Obligation to use the FED –
Issuance of the fiscal receipt for sales transaction
Record to be kept by FED user
Maintenance of records extracted from the FED
How to handle defective or malfunctioning FEDs
Supply of FED and Requirements for Supply –
Qualification for licensing as FED supplier
Application for licence as a FED supplier
Issue of licence
Renewal of licence
Revocation of licence

19. Conclusion… Critical sections of Act 966: FED Manufacturer –
Qualification of manufacturer of FED
Selection of manufacturer of FED
Communication Service Provider and their Obligations –
Modalities for engaging a Communication Service Provider
Miscellaneous Provisions –
Technical Committee
Obligation of purchaser to collect receipt
Offences
Compounding of offences
Transitional Provisions
Commencement

20. Thank You

21. Q & A