GRA to implement Physical and Electronic Devices Act this yr – Commissioner-General – Life Pulse Daily
Editor-in-chiefFebruary 20, 20263 Mins read21
GRA to Implement Physical and Electronic Devices Act This Year – Commissioner-General
Introduction
The Ghana Revenue Authority (GRA) has announced plans to implement the Physical and Electronic Devices Act within the current year, marking a significant step toward modernizing the country’s tax collection system. This initiative, revealed by Commissioner-General Mr. Anthony Kwasi Sarpong, aims to enhance Value Added Tax (VAT) automation and improve compliance across Ghana’s business landscape.
Key Points
- GRA plans to implement the Physical and Electronic Devices Act in 2026
- The Act will enable deployment of physical tracking devices at businesses nationwide
- Initiative is part of broader VAT automation reforms
- Current VAT compliance rate is approximately 40%, leaving a 60% gap
- The goal is to make VAT a key anchor in national revenue mobilization
- Three-day strategy retreat focused on VAT performance and compliance
Background
The Ghana Revenue Authority has been working on comprehensive reforms to modernize its tax collection systems. The journey toward automation began in 2025 with the passage of new VAT legislation, which laid the groundwork for more sophisticated tracking and collection mechanisms. The recent three-day strategy retreat of the Domestic Tax Revenue Division (DTRD) in Sunyani served as a platform to discuss these transformative initiatives under the theme “Transforming for impact and growth: Focusing on VAT performance and compliance.”
The current VAT compliance challenge is significant, with the Commissioner-General revealing that only about 40% of potential VAT revenue is being captured. This means that out of every 100 potential VAT-paying businesses, only 40 are currently being tracked and taxed, leaving a substantial revenue gap that the new measures aim to address.
Analysis
The implementation of the Physical and Electronic Devices Act represents a strategic move by the GRA to close the compliance gap through technological intervention. By deploying tracking devices at businesses nationwide, the Authority will gain real-time visibility into transactions, making it significantly more difficult for businesses to underreport or evade VAT obligations.
This approach aligns with global best practices in tax administration, where many countries have successfully implemented electronic tracking systems to combat tax evasion and improve revenue collection. The automation of VAT collection not only increases compliance but also reduces the administrative burden on both the tax authority and compliant businesses.
The timing of this implementation is particularly significant given Ghana’s ongoing efforts to strengthen its revenue base to support national development priorities. The Commissioner-General’s emphasis on businesses as “essential partners in the tax system” suggests a collaborative approach rather than purely punitive measures, which could help in achieving higher voluntary compliance rates.
Practical Advice for Businesses
Businesses operating in Ghana should prepare for the upcoming implementation by:
1. Reviewing their current VAT compliance status and ensuring all necessary registrations are up to date
2. Investing in compatible point-of-sale systems that can integrate with the new tracking devices
3. Training staff on new compliance requirements and reporting procedures
4. Consulting with tax professionals to understand the full implications of the new system
5. Maintaining accurate financial records to facilitate smooth transition to the automated system
6. Cooperating fully with GRA officials during the implementation phase
Early preparation will help businesses avoid disruptions when the new system becomes operational and may also position them favorably with the tax authority.
FAQ
What is the Physical and Electronic Devices Act?
The Physical and Electronic Devices Act is legislation that authorizes the Ghana Revenue Authority to deploy tracking devices at businesses to monitor transactions and ensure VAT compliance. The Act provides the legal framework for automated tax collection systems.
When will the implementation begin?
According to Commissioner-General Mr. Anthony Kwasi Sarpong, the GRA plans to implement the Act within the current year (2026). Specific timelines for different sectors or regions have not yet been announced.
How will this affect small businesses?
Small businesses will be required to install tracking devices and comply with automated reporting requirements. While this may represent an initial cost and adjustment period, it could also simplify record-keeping and potentially reduce audit risks in the long term.
What happens if businesses don’t comply?
The Act empowers the GRA to monitor transactions nationwide, which means non-compliance will be easier to detect. While specific penalties haven’t been detailed, businesses can expect enforcement actions for non-compliance, including potential fines and legal consequences.
Will there be support for businesses during implementation?
The Commissioner-General emphasized the importance of taxpayer cooperation and noted that the country has provided necessary resources for GRA staff. While specific support programs for businesses haven’t been announced, the collaborative tone suggests that guidance and assistance may be available during the transition period.
Conclusion
The Ghana Revenue Authority’s plan to implement the Physical and Electronic Devices Act marks a pivotal moment in the country’s tax administration evolution. By addressing the significant 60% compliance gap in VAT collection, this initiative has the potential to substantially increase government revenue while modernizing business operations. The success of this program will depend largely on the collaborative relationship between the GRA and the business community, with clear communication, adequate support, and a shared commitment to national development being essential factors. As Ghana continues to strengthen its revenue mobilization efforts, this technological intervention could serve as a model for other developing economies facing similar tax compliance challenges.
Sources
– Ghana Revenue Authority official communications
– Life Pulse Daily report on GRA strategy retreat
– Statements from Commissioner-General Mr. Anthony Kwasi Sarpong
– Domestic Tax Revenue Division (DTRD) announcements
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