A STUDY OF THE CHALLENGES AND PROSPECTS OF THE VAT SERVICE IN GHANA

Abstract

Each country has different reasons for adopting VAT but the principal motive is the same: a properly designed VAT system raises more revenue with less administrative and economic cost than any other more broadly based tax.

The study sought to unearth the challenges of the Value Added Tax (VAT) administration and highlighted the prospects of VAT as a valuable tool for policy formulation for tax mobilization in Ghana.

The study was conducted using both qualitative and quantitative methods using primary and secondary data. The primary data were the responses from questionnaires received from respondents and also interviews in the form of formal and informal. The secondary data on the other hand were gathered from written materials.