Act 870 to Act 1151 VAT concordance

The charge on taxable supplies and imports remains in section 1. The current provision expresses the charge by reference to a taxable transaction and must be read with the current definitions and rate rule.

Liability for VAT remains in section 2. The current section retains the supplier, importer and recipient-of-imported-services structure, subject to the current Act's wording.

Act 1151 replaces Act 870's multi-rate structure with a fifteen per cent VAT rate. The former three per cent flat-rate scheme and five per cent immovable-property rate are not reproduced in section 3.

The taxable-person concept remains in section 4. Registration under the current Act continues to determine when a person is a taxable person.

Section 5 retains the general taxable-activity test and expressly includes natural-resource exploration and exports of traditional products other than cocoa beans, coffee and shea butter, as well as exports of non-traditional products.

The registration rule is materially recast. Services require registration within thirty days after engaging in the taxable activity unless the Commissioner-General directs otherwise; goods use a GHS750,000 twelve-month threshold and a GHS187,500 three-month test with the statutory expectation condition.

The period-for-registration rules move to section 8. Their position in the sequence changes because Act 1151 puts threshold exceptions in section 7.

The notice-of-registration rule moves from section 8 to section 9 without changing its subject.

The registration-certificate rule moves from section 9 to section 10 without changing its subject.

The turnover-based notice and cancellation subject moves to section 11, which now addresses notice of registration or cancellation in respect of turnover.

The exceptions move to section 7. The separate public-authority limb and the former GHS10,000 public-entertainment threshold are not reproduced; promoters must apply at least forty-eight hours before the event, while auctioneers remain subject to a separate timing rule.

The rules for groups and distinct divisions remain in section 12.

Voluntary registration remains in section 13, with the current statutory conditions controlling.

Compulsory registration remains in section 14 and now also applies where the Commissioner-General considers registration necessary for VAT purposes.

The failure-to-register sanction moves to section 16. Act 1151 states a penalty of not less than three times the VAT on taxable supplies payable from the registration date until application; Act 870 used a maximum of two times the tax payable over the relevant period.

The upfront-payment rule moves to section 17 and the rate rises from 12.5 per cent to twenty per cent of customs value. The credit mechanism after registration and filing remains.

The non-resident telecommunications and electronic-commerce rule moves to section 15. The current Act defines a Tax registered agent in this context and its interpretation provisions broaden the digital-service terminology.

The register of taxable persons moves to section 18. The current provision retains the Commissioner-General's duty to keep the register and the power to specify the particulars it contains.

The notice-of-change rule moves to section 19. The current provision retains the fourteen-day notice period for cessation, sale, relocation, ownership and other specified changes, and the advance-notice rule for selling a going concern.

Cancellation remains in section 20. The former ground that the person has no fixed place of business or abode is not reproduced among the cancellation grounds.

Act 1151 separates the former combined definition: section 21 deals with goods and section 22 with services. The service definition expressly includes the grant, assignment or surrender of a right.

Repossession of goods moves to section 23. Act 1151 divides the former single sentence into two subsections but retains the deemed supply by the debtor and the taxable-activity treatment where the debtor is registered, subject to the asset-use exception.

The lay-away rule moves to section 24. The betting limb formerly inserted into Act 870 section 22 was later removed from the final historical text and is not part of section 24.

Separate supplies move to section 25. The current section retains the test that positive-rate, zero-rated and exempt components are treated separately when each component is reasonably capable of separate supply.

Activities that do not constitute supplies move to section 26.

The effect of denial of input tax moves to section 27. The current provision retains the consequence that a later supply is treated as outside the course or furtherance of a taxable activity where input tax on the acquisition was denied.

Payment of a deposit and receipt of a claim as a supply moves to section 28.

The former rule treating power and related items as goods is absorbed into section 21's definition of a supply of goods.

Disposition of a taxable activity moves to section 29, which ties the rule expressly to a supply of goods under section 21(3).

Phone cards and prepayments move to section 30, which expressly covers prepaid airtime, mobile or fixed electronic-device prepayments, tokens, vouchers, gift certificates and specified stamps.

The substantive prepayment subject appears in section 30, while the power to make regulations is consolidated in section 71.

Mixed supplies remain in section 31. The incidental-goods, incidental-services and import rules are retained, while subsection (2) restates the real-property exception in separate paragraphs for supplied and imported services.

Supplies by agents or auctioneers remain in section 32.

The taxable-supply rule remains in section 33. Act 1151 retains the consideration, taxable-person and taxable-activity elements and places the exempt-supply exclusion in a separate subsection cross-referencing section 35.

The import-payment rule remains in section 34. The current text refers to the Customs Act, 2015 (Act 891) and to current section 61 for imported services instead of the former customs statute and Act 870 section 53.

The exempt-supply rule remains in section 35; the current First Schedule supplies the operative exempt list.

The zero-rated-supply rule remains in section 36; the current Second Schedule supplies the operative list.

The exempt-import rule remains in section 37 and now points to Part C of the Third Schedule of the Harmonised Commodity Description and Coding System rather than the former Customs Tariff Schedule wording.

The relief rule remains in section 38. Act 1151 identifies taxable imports and domestic acquisitions, provides for regulations governing the method of relief and expressly accommodates relief by refund with proof of payment.

Time of supply remains in section 39. The current provision adds sales receipts to relevant timing events and refers to cash-operated or token-operated machines; the interpretation section defines token.

Time of import remains in section 40. Act 1151 correctly applies section 39 to determine the time of an imported service, replacing Act 870's inapposite cross-reference to section 19.

Invoice and sales-receipt rules move to section 43. A fiscal receipt issued under the Taxation (Use of Fiscal Electronic Device) Act, 2018 (Act 966) may satisfy the stated invoicing requirements, while the penalty is placed in section 66.

The former combined place-of-supply provision is divided: section 41 covers goods and section 42 covers services. Section 42 also authorises guidelines on activities amounting to use of a service by a recipient.

Value of taxable supply moves to section 44. The current value excludes VAT, the National Health Insurance Levy, the Ghana Education Trust Fund Levy and the Tourism Levy.

Import valuation moves to section 45 and now refers to sections 67 and 68 of the Customs Act, 2015 (Act 891).

Adjustments move to section 46. The current section retains the cancellation, variation, consideration-change and return-of-supply events, together with the debit-note and credit-note mechanisms for correcting output tax.

Bad-debt adjustment moves to section 47. The current section states the recovery actions, futility and accounting-entry requirements for treating a debt as irrecoverable to the Commissioner-General's satisfaction.

The tax-payable computation moves to section 48. The output-tax less deductible-input-tax structure remains, with current cross-references to sections 49, 53 and 61 and the regulation-making power for industries with difficult calculations retained.

The appointment power moves to section 55. The substance remains a written appointment by the Commissioner-General of a VAT Withholding Agent for the Ghana Revenue Authority.

Withholding-agent duties move to section 56. The current section also treats tax withheld and paid to the Commissioner-General as paid to the withholdee for the withholdee's claim.

The scope rule is consolidated in section 57(1), covering zero-rated suppliers and selected Government and other registered entities. Section 57 also absorbs the former sections 47D and 47E consequences into subsections (2) and (3).

The failure-to-withhold and remit consequence is carried into section 57(2), including the tax that should have been withheld and a thirty per cent penalty.

The recovery right after payment of unwithheld VAT is carried into section 57(3).

Act 1151 divides the former input-tax provision among section 49 on deductible input tax, section 50 on qualification and section 51 on other conditions. Section 49 also addresses the TIN needed on a fiscal receipt for an input-tax claim.

Mixed taxable and exempt input-tax apportionment moves to section 52.

Refund or credit for excess tax moves to section 53. The current section expressly covers qualifying locally manufactured textiles and sanitary towels and excess credit attributable to a person qualifying for relief under section 38.

The time for payment of a refund moves to section 54. The thirty-day payment rule, prior-return and outstanding-liability conditions, rejection or offset outcomes and delayed-refund interest mechanism are retained with current cross-references.

Act 1151 separates the combined provision: returns are governed by section 59 and the payment date by section 60. Section 59 also permits electronic filing through a fiscal electronic device where its use is required.

Payment of tax on imported services moves to section 61.

Assessment and correction are separated into sections 62 and 63.

Recovery of tax due moves to section 64. An amount shown as VAT on an invoice or sales receipt remains recoverable from the issuer irrespective of taxable-person status, invoice status or whether VAT was chargeable on the supply.

Recovery from a recipient moves to section 65, which adds incorrect treatment as a relief supply caused by the recipient's fraud or misrepresentation.

Act 1151 does not recreate the former VAT Refund Account as a provision of the current VAT Act.

Failure to issue a tax invoice moves to section 66, which also contains the administrative penalty formerly associated with the invoice rules.

Evasion moves to section 67. The current penalty has stated lower and upper bounds of twice and three times the tax evaded and a stated imprisonment range of two to five years, or both.

The VAT Act no longer contains a corresponding power to seal premises. Tax administration and enforcement must be traced under the Revenue Administration Act, 2016 (Act 915), rather than inferred from Act 1151.

Tax-inclusive pricing moves to section 68. The current provision retains inclusive pricing as the default, the conditions for displaying an exclusive price and VAT amount, the premises-notice rule and the Commissioner-General's alternative-display approval power.

Declaration of representative moves to section 69. Act 1151 retains the Commissioner-General's declaration power and now expressly states that the declaration is for the purposes of section 70.

A person acting in a representative capacity moves to section 70.

The regulation-making power moves to section 71 and also absorbs regulation subjects formerly distributed elsewhere in Act 870.

Interpretation moves to section 72. Act 1151 updates existing definitions and adds terms needed by the current structure, including civil engineering public works, conveyance, digital service, tax registered agent and token.

Act 1151 replaces the former closing provision with section 73 on repeals and savings, section 74 on transitions and section 75 on commencement. Section 74(2) preserves the repealed enactments for years of assessment beginning before 1 January 2026.

Act 1151 re-enacts the exempt-supply list with material revisions. The current Schedule must be used; among other changes, the former lottery, gaming and betting exemption and specified fund-management-fee exemption are not reproduced, while electricity is no longer confined to the former lifeline-unit limit.

Act 1151 re-enacts the zero-rated list with revisions. It extends qualifying locally produced textiles through 31 December 2028, does not reproduce the former locally assembled vehicle limb, and specifies additional export-related freight, insurance, stevedoring, port-operation and shipping-line services.

Act 1151 retains relief supplies in a Third Schedule but revises its contents and administration. The current Schedule, not the former Schedule, controls relief under section 38.

The tax debit-note form is re-enacted in the Fourth Schedule.

The input-tax apportionment formula is re-enacted in the Fifth Schedule and is now linked to current section 52.

The former transitional Schedule has no Schedule-level counterpart. Current savings and transition rules are located in sections 73 and 74 of Act 1151.