The Ringway Estate Local Value Added Tax (VAT) Service has held a seminar for registered traders of the Value Added Tax (VAT) Flat Rate Scheme (VFRS), a year after its introduction.
The Head of the Ringway Estate Local VAT Service, Mr Ackah Mensah, said it was only right for the service to meet with the implementers of the scheme a year after its introduction to get to know the challenges and concerns.
The VFRS is a simplified method of collecting and accounting for the VAT and the National Health Insurance Law (NHIL) tax.
Designed for the retail sector, a marginal rate of three per cent on the value of each taxable item sold is charged.
This implies the calculation of the tax and reduces the burden of compliance among retailers.
The system was developed a year ago by the VAT Service in collaboration with traders’ unions and associations, as a result of computational difficulties in the calculation of the VAT payable under the invoice–credit method.
Mr Mensah told journalists that with the introduction of the system, the administration of the tax had improved although some challenges persisted, hence the meeting with the retailers.
Two officials of the Ringway Estate Local VAT Service, Messrs Tony Dekagbe and Joseph Fiadzo, took participating traders through the basics of the VFRS, and how to file returns under the scheme.
SUBMITTED WEDNESDAY SEPTEMBER 10, 2008
PUBLISHED MONDAY, SEPTEMBER 15, 2008