Betting companies and patrons of their services will now pay 17.5% VAT on their returns, the Ghana Revenue Authority has stated.
The betting business has seen a boom with many Ghanaians betting on various football league games across the world.
Speaking at a workshop in Bolgatanga to sensitize clients’ on proper book keeping and also to address some tax concerns, the Revenue Officer for Tamale medium tax company, Erasmus Ayenor Tei said the GRA has reviewed its laws to ensure that persons engaged in “My bet” pay Value Added Tax (VAT) for the development of the country since more people are showing interest in betting.
[contextly_sidebar id=”rOa9ngL1ZKTW124MpsUxHUfDk6uM5up5″]”The VAT on betting came because of the amendment to the act. They have realized that more people are going into betting and is a form of people making money because people just sit down they don’t do any work and that is their main business at the end of the day. So they go into betting, sit down look at the leagues they know this team will win, the other team will not win and bet.”
He said the GRA has asked the betting companies to charge 17.5%VAT and pay to government for the development of the nation.
“So if you win a bet of GHC5,000 you might end up receiving a cash sum less than GHc5,000 because 17.5% of the amount will be deducted by the betting company and paid as VAT to government,” Mr. Ayenor stated.
He admonished agents of betting companies to comprehensively explain the essence of VAT on bets for their clients to corporate with GRA.
Mr. Ayenor urged business entities to keep up -to- date records of their transactions to ascertain the progress of their investments, facilitate securing of loans, and avoid theft cases within the business.
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By: Frederick Awuni/citifmonline.com/Ghana