Q&A - updated 2

1. What is Upfront Payment all about? 7. Is upfront payment avoidable? Note: An importer who claims they are not liable to Upfront payment is a new compliance tool targeted at Yes. To avoid upfront payment, you must register for make the upfront payment may apply to the registrable importers of taxable goods who are VAT, if you qualify to register. Commissioner - General stating the reason(s) in the required by law to register for VAT but have not ICUMS for exclusion from the charge. registered. Basically, this policy is intended to impose 8. Who qualifies to register for VAT a sanction on importers of taxable goods who are A person engaged in a taxable activity whose taxable 11. Does the upfront payment apply to imports required to register for VAT but have failed to register. supplies exceed GHS 200,000 within a twelve (12) under auction? month period qualifies to register for VAT. Yes, taxable goods sold or allocated under auction, 2. Is Upfront Payment a new tax? with a value of GHC 200,000 or more, will attract No. It is a compliance tool to encourage persons 9. When will I be required to make upfront upfront payment if the beneficiary qualifies for VAT required to register for VAT to register and file tax payment? registration but has not registered. returns. When taxable goods are declared to Customs. 12. Can I claim my upfront payment? 3. Why Upfront Payment? 10. Which imports are excluded from upfront Yes. A taxpayer can apply for recovery within six (6) • To discourage non-compliance by importers who payment? months after the payment date upon satisfying the are required to register and account for domestic The following are excluded from the upfront payment: conditions for recovery. VAT. • To bring uniformity to the treatment of taxable a. Exempt Imports such as: 13. What conditions do I have to meet in order to supplies made by VAT-registered taxpayers and • Agricultural inputs recover the upfront payment? non-compliant importers. • Crude oil and hydrocarbon products You may recover the upfront payment upon satisfying • Salt for human consumption the following conditions: 4. How is upfront payment computed? • Imports under the following categories; Upfront payment is charged at a rate of 12.5% of the • Temporary Import, • made the upfront payment, Customs Value of taxable imports. • Transhipments, Transit & Coasting trade, • registered for VAT (where applicable), • In-bond manufacturing, • submitted all previous returns, 5. Who makes upfront payments? • Warehoused, and • paid all taxes, penalties and interest, Persons who import taxable goods in commercial • Any cargo under bond/suspense. • no outstanding obligations under any tax law, quantities with a value of GHS 200,000.00 and above, • made an application to the Commissioner - General and are required to register for VAT but are not b. Privileged or exempt persons / institutions / for recovery on the prescribed form available on the registered. companies. (The President, Diplomats and Taxpayers’ Portal (www.taxpayersportal.com). diplomatic missions, persons with disability, • satisfied any other conditions that the 6. Which category of imports attract upfront religious organisations, donor and charity Commissioner - General may determine payment? organisations, free zone enterprises, etc) • Imports meant for home consumption. • Government institutions and agencies, 14. How do I recover upfront payment? • Imports under auction. You may recover the upfront payment by applying • Taxable goods on transfer from bonded warehouse. c. Imported taxable goods valued below the electronically on the ‘RECOVERY OF UPFRONT threshold of GHS200,000.00. PAYMENT’ form, which is available on the Taxpayers’ Portal (www.taxpayersportal.com)

15. What possible decisions can be taken on my 20. What is the effective date of implementation of HANA RE VENUE AUTHORITY application for recovery of upfront payment? the upfront payment policy? An application for recovery of the upfront payment 1st May 2023 G Integrity.Fairness.Serivce. may be: 21. How can an importer of taxable goods for UPFRONT • Rejected personal use with a value above GHS 200,000.00 PAYMENT • Approved, and the full amount paid, or be relieved from upfront payment? • Approved and part or the entire amount used to The importer may apply for a waiver on the ICUMS FREQUENTLY ASKED off-set any tax liabilities Single Window Portal with supporting documents for the Commissioner-General to consider before making QUESTIONS 16. If my application is approved, how long will it payment. take for payment to be made? To ensure Value Added Tax (VAT) compliance, Payment will be made within thirty (30) days of receipt Address: the VAT Act, 2013 (Act 870) was amended by of the application. Head office: Off Starlets ‘91 road the VAT (Amendment) Act, 2022 (Act 1082) near Accra Sports Stadium, to impose an upfront payment of 12.5% of 17. Can my application for recovery of the upfront Post Office Box 2202, Accra. the Customs value of taxable goods (including payment be rejected? Digital Address: GA-144-3422 vehicles) imported by persons who are required An application for recovery of upfront payment may be to register for VAT but have failed to register at rejected if an applicant fails to meet any of the For assistance call all ports of entry. Such importers will however conditions for recovery. Toll-Free: 0800 900 110 be allowed to recover this payment when they register and file their VAT returns, as required 18. Will consolidated cargo attract upfront @GhanaRevenue by Act 1082. payment? 055 299 0000 / 020 063 1664 No. Individual Bill of Entries (BOEs) may be charged [email protected], Integrity.Fairness.Serivce. when separation is done and the Bill of Entry (BOE) www.gra.gov.gh passed. Note: A consolidated cargo is a combination of cargo from a number of importers into a single container for shipment. 19. Will I be liable for upfront payment if my consignment was assessed before the effective date of commencement? Yes, you will be liable unless the tax bill has been paid or security for any duties due were deposited before the effective date of the policy