Insurance coverage corporations that fail to gather or file the correct amount of taxes withheld on the VAT on Non-Life Insurance coverage premiums will likely be punished and compelled to pay penalties, the Ghana Income Authority (GRA) has warned.
In line with the GRA, compliance mechanisms have been put in place to make sure that the mandatory income is accrued.
Chief Income Officer of Coverage and Programmes on the GRA, Sugar Adokunu in an interview on the AM Present on Joynews disclosed that each one penalties within the VAT legal guidelines will likely be borne by corporations that flout the regulation.
The 15 p.c VAT on Non-Life Insurance coverage commenced on July 1, as a part of measures by the GRA to spice up income.
“There’s a penalty within the VAT legal guidelines which is able to apply and the insurance coverage firm will likely be made to pay. There’s one other extra GH₵10 per day penalty that will likely be charged, so it’s all a part of the regulation”, he stated.
The 15 p.c VAT on Non-Life is a part of income measures together with the 5 p.c VAT on rental properties for the second half of the yr to spice up home income.
VAT on Non-Life Insurance coverage refers back to the 15% Worth Added Tax utilized to premiums paid on basic insurance coverage insurance policies equivalent to hearth, marine, journey, housebreaking, property, private accident, legal responsibility, and workmen’s compensation insurance coverage. These insurance policies provide safety towards dangers aside from demise or everlasting incapacity and are categorized as taxable provides underneath the VAT Act, 2013 (Act 870), as amended.
VAT on Non-Life Insurance coverage insurance policies in Ghana is charged at a price of 15% with Insurance coverage suppliers liable for making use of this VAT on relevant premiums and remitting it to the Ghana Income Authority (GRA).
Motor insurance coverage, nevertheless, stays exempt underneath the VAT (Modification) Act 2023, (Act 1107) as a result of its obligatory nature and the necessity to guarantee affordability and accessibility for car homeowners.
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