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- 2 Marks
Question
The introduction of Withholding Value Added Tax was widely celebrated by tax administrators and tax practitioners as it is believed the benefits to be raked by the Ghana Revenue Authority would be enormous.
Required:
What purpose does Withholding Value Added Tax seek to achieve?
(2 marks)
Answer
Withholding VAT is not a new tax but a compliance measure aimed at ensuring that all VAT due to the government is paid. It involves the declaration of VAT by both the supplier and the withholding agent. The primary purpose is to curb the abuse by non-filers of VAT who charge VAT without accounting for it to the authorities.
(2 marks)
- Tags: Compliance, Tax Administration, Withholding VAT
- Level: Level 2
- Topic: Withholding Tax Administration
- Series: MAY 2020
- Uploader: Cheoli