Introduction: A Major Step Toward Digital Taxation
In 2025, the Ghana Revenue Authority (GRA) is expanding and enhancing its electronic Value Added Tax (E-VAT) system. This initiative, part of a broader digital transformation strategy, is designed to improve tax compliance, increase efficiency, and make VAT reporting more accessible for businesses.
Over 5,000 VAT-registered entities have already been engaged by the GRA, with more than 3,000 currently live on the E-VAT platform since its initial rollout in 2022. The goal is clear: to modernize the entire VAT system and create a simplified, fairer tax environment for both businesses and the government.
What Is the E-VAT System?
The E-VAT system is an electronic solution that allows businesses to issue, store, and transmit VAT invoices in real-time. This system supports better compliance monitoring and creates a digital audit trail for the Ghana Revenue Authority to track taxable transactions more effectively.
Key Features:
- Real-time electronic VAT invoicing
- Secure digital storage of tax records
- Automated reporting and reconciliation tools
- Integration potential with accounting systems
Why the Update in 2025?
While the E-VAT rollout began in 2022, the GRA is now implementing a more comprehensive and upgraded version. According to Acting Commissioner General Anthony Kwasi Sarpong, the system is undergoing a full review to ensure that all VAT-registered businesses are captured and that the digital tools being implemented are robust and future-proof.
“The process is getting more enhanced, and modern technology will play a key role in ensuring full accountability at the end of the day,” Sarpong noted during a virtual stakeholder engagement.
The Ministry of Finance is also closely involved in this process, with upcoming legislation expected to receive parliamentary review and approval.
Who Is Affected?
The E-VAT system applies to all VAT-registered businesses in Ghana. This includes companies across various sectors, from retail to manufacturing, logistics, and professional services.
By the end of 2024:
- Over 5,000 businesses had been engaged by GRA for onboarding
- More than 3,000 entities had already gone live on the platform
Despite technical challenges related to integration and taxpayer systems, the GRA has continued onboarding efforts to ensure nationwide adoption.
Legal Backing
The implementation of the E-VAT system is backed by the Revenue Administration Act, 2016 (Act 915). This legislation grants the Commissioner-General the authority to adopt modern administrative systems that support tax fairness, transparency, and accountability.
Potential Benefits for Taxpayers
While the system requires some adjustment, it offers several long-term advantages:
| Benefit | Description |
| Improved Accuracy | Reduces manual entry errors in VAT calculations |
| Time Savings | Automates report generation and filing processes |
| Audit Readiness | Creates a complete and secure digital trail of all taxable transactions |
| Compliance Simplification | Provides clarity and structure to VAT obligations |
| Increased Fairness | Helps prevent underreporting and expands the tax net to include informal businesses |
Ongoing Monitoring and Compliance Checks
The GRA is currently conducting compliance checks with businesses already live on the E-VAT platform. These reviews are part of the assessment process to identify technical challenges, evaluate system performance, and make further improvements where needed.
What’s Next?
The E-VAT initiative will continue to evolve in 2025. As the system becomes more advanced, the GRA is expected to introduce:
- Additional taxpayer education sessions
- More integration options for businesses using digital accounting tools
- Improved taxpayer support for onboarding and troubleshooting
- Updates to VAT filing processes based on system data
Stakeholders should also expect further policy adjustments once the Finance Ministry finalizes and submits its recommendations to Parliament.
Conclusion
The enhanced E-VAT system is a significant step forward in Ghana’s efforts to digitize tax administration. Businesses are encouraged to stay informed, ensure their systems are compatible, and take advantage of available GRA support during the onboarding process.
While implementation may present short-term challenges, the long-term goal is to create a fairer, more efficient, and transparent VAT system that benefits both taxpayers and the government.