VAT is chargeable on imports. the basic information the VAT charge on import goo
ID: 2559967 • Letter: V
Question
VAT is chargeable on imports. the basic information the VAT charge on import goods and services is the value of the goods and services. at a recent meeting organized by the Ghana National Chamber of Commerce and Industry to educate members on the taxable value for determining VAT on imported goods and services. As a renowned tax consultant, you were invited to discuss this issue.
The topic you are to speak on is "what is the taxable value for determining the VAT on imported goods and services.
Require:
As the preferred consultant, please present to the chamber a discussion paper on the taxable value for determining the VAT on imported goods and services.
Also indicate in your presentation the procedure that must be followed before payment of VAT on the import of services is made
Explanation / Answer
Ghana government uses HS code to impose custom duty on the goods & services and we should also know that VAT is imposed on the imported goods & services. If there are some specific exemption for some goods & services then there will be no VAT on such goods & services otherwise all imported goods & services will be charged with VAT.
VAT is imposed on the basis of weight, value & volume of the imported goods and services. Hence we can say that there may be different VAT for different types of goods & services.
VAT is imposed on the basis of rates given in the HS mannual. This tax is imposed on the imported value of goods & services. So as a result we will see that ultimate price of these goods & services will be higher due to such VAT tax.
Ghana government imposing VAT on the basis of different rates to differentiate between various types of products & services. With the help of VAT tax government will try to increase & decrease consumption of sepecific products & services. If Ghana government want to increase consumtion of product & service then it will do exempt those products & services or can reduce VAT tax.
If Ghana government want to reduce the consumption of some productions & services then VAT tax will be imposed or will be increased.
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