The Ghana Revenue Authority (GRA) has released the list of services that would attract the 17.5 percent Value Added Tax (VAT) and National Health Insurance Levy (NHIL).<\/p>\n
The GRA in a letter to Bankers and Banks said the 32 fee-based services would attract the tax from July 1, 2014.<\/p>\n
The amendment of the VAT law last November expanded the scope of the tax and raised the rate from 15 percent (including the National Health Insurance Levy) to 17.5 percent.<\/p>\n
Financial services, which hitherto had been exempted from VAT, have now been brought under the tax — placing Ghana among a very short list of countries in the world that charge VAT on financial services.<\/p>\n
According to the amended law, \u201cfinancial services\u201d means provision of insurance; issue, transfer, receipt of, or dealing with money — whether in domestic or foreign currency –or any note or order of payment of money; provision of credit; or operation of a bank account or an account of a similar institution.<\/p>\n
The list of fees, commissions and similar charges for financial services that are subject to the tax was developed by the Technical Committee for the Implementation of VAT Act 2013 (Act 870) which was made up of representatives of the Ghana Bankers Association of Bankers, the Ministry of Finance and the Ghana Revenue Authority and approved by the Minister of Finance, Seth Terkper.<\/p>\n
Find below the full list of financial services that would attract the 17.5% tax:<\/b><\/p>\n
1.\u00a0\u00a0\u00a0\u00a0 CURRENT ACCOUNTS (Foreign\/Local) – CORPORATE BODIES ONLY<\/p>\n
2.\u00a0\u00a0\u00a0\u00a0 BANK DRAFT (PAYMENT ORDER)<\/p>\n
3.\u00a0\u00a0\u00a0\u00a0 STOPPED CHEQUES<\/p>\n
4.\u00a0\u00a0\u00a0\u00a0 RETURNED CHEQUES<\/p>\n
5.\u00a0\u00a0\u00a0 COMMISSION ON TURNOVER (CORPORATE BODIES ONLY)<\/p>\n
6.\u00a0\u00a0\u00a0\u00a0 OVERDRAFT PROCESSING OR RENEWAL FEE<\/p>\n
7.\u00a0\u00a0\u00a0\u00a0 REVOLVING ACCEPTANCE CREDIT<\/p>\n
8.\u00a0\u00a0\u00a0 ARRANGEMENT FEE FOR FACILITIES<\/p>\n
9.\u00a0\u00a0\u00a0 STATEMENTS AND CERTIFICATES OF BALANCE<\/p>\n
10.\u00a0 CLEARING CHARGES<\/p>\n
11.\u00a0 CHEQUES FOR COLLECTION<\/p>\n
12.\u00a0 STANDING ORDERS<\/p>\n
13. TELEPHONE BANKING<\/p>\n
14.\u00a0 SAFE CUSTODY<\/p>\n
15. CHEQUE BOOKS<\/p>\n
–\u00a0 Sale of cheque leaflet<\/p>\n
–\u00a0 Replacement of Lost Cheque Book<\/p>\n
16.\u00a0\u00a0 DEBIT CARDS AND CREDIT CARDS<\/p>\n
17.\u00a0\u00a0\u00a0 REVOLVING CREDITS<\/p>\n
18.\u00a0\u00a0 COLLATERAL MANAGEMENT<\/p>\n
19.\u00a0\u00a0 TRANSFER OF DOCUMENTS TO OTHER BANKS<\/p>\n
20.\u00a0\u00a0\u00a0 GUARANTEES\/BONDS\/TENDER\/PERFORMANCE<\/p>\n
21.\u00a0\u00a0\u00a0 REQUEST FOR FOREX DRAFTS<\/p>\n
22.\u00a0\u00a0 OUTWARDS TRANSFER: SWIFT\/TELEX<\/p>\n
–\u00a0 Drafts\/Money Orders – Customer<\/p>\n
23.\u00a0\u00a0 TRAVELLERS CHEQUES, DRAFTS<\/p>\n
24.\u00a0\u00a0 CHEQUE LODGEMENTS – (FOR CORPORATE BODIES AND THIRD PARTIES ONLY)<\/p>\n
25.\u00a0\u00a0\u00a0 EVACUATION FEE (CASH-IN-TRANSIT)<\/p>\n
26.\u00a0\u00a0\u00a0 UNPAID STANDING ORDER<\/p>\n
27.\u00a0\u00a0 CLOSURE OF ACCOUNTS<\/p>\n
28.\u00a0\u00a0\u00a0 REMOTE BANKING SERVICES<\/p>\n
–\u00a0 Online Banking (Internet)<\/p>\n
–\u00a0 E-statements<\/p>\n
–\u00a0 E-clients<\/p>\n
–\u00a0 Phone banking<\/p>\n
–\u00a0 SMS banking<\/p>\n
–\u00a0 Mobile Banking<\/p>\n
–\u00a0 Monthly subscription<\/p>\n
–\u00a0 Financial Transaction Fee<\/p>\n
29.\u00a0\u00a0 LENDING FEES<\/p>\n
–\u00a0 Commitment Fee (Arrangement fee, Processing fee, facility fee)<\/p>\n
–\u00a0 Processing Fee<\/p>\n
–\u00a0 Property Valuation Fee (Open market value)<\/p>\n
–\u00a0 Guarantee Commission<\/p>\n
–\u00a0\u00a0 Bid Security<\/p>\n
–\u00a0 Bank Credit Letter (Letter of Intent)<\/p>\n
–\u00a0 Mobilization Guarantee<\/p>\n
–\u00a0 Retention Guarantee<\/p>\n
–\u00a0 Performance Bond<\/p>\n
–\u00a0 Default or restructured<\/p>\n
30.\u00a0\u00a0 OTHER LOANS, EXCLUDING SALARY ADVANCE<\/p>\n
–\u00a0 Arrangement Fees<\/p>\n
–\u00a0 New Loans<\/p>\n
–\u00a0 Top-Ups<\/p>\n
–\u00a0 Early Settlement Fees<\/p>\n
31.\u00a0\u00a0 LETTERS OF CREDIT (IMPORTS)<\/p>\n
Establishment Commission<\/p>\n
–\u00a0 Arrangement Fee<\/p>\n
* Presentation under L\/C Drawings Amendments:<\/p>\n
–\u00a0 Increase in Amount<\/p>\n
–\u00a0 Extention of period<\/p>\n
–\u00a0 Extention of period – another quarter<\/p>\n
–\u00a0 Discrepancy Other amendments:<\/p>\n
32.\u00a0\u00a0 DOCUMENTARY BILLS FOR COLLECTION (IMPORTS)<\/p>\n
Handling charges – customers Negotiation Commission<\/p>\n
–\u00a0 Advice of fate<\/p>\n
–\u00a0 Bills deleted<\/p>\n
–\u00a0 Protest Payment Commission<\/p>\n
–\u00a0 Holding charges (per quarter)<\/p>\n
Prior Approval – Customers with:<\/p>\n
–\u00a0 Own Resources<\/p>\n
–\u00a0 Telex\/Cable charges<\/p>\n
– Swap charge<\/p>\n
Customers allocated funds from Bank;<\/p>\n
ExchangeTelex \/ Cable charges<\/p>\n
<\/p>\n
By: Evans Effah\/citifmonline.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":"
The Ghana Revenue Authority (GRA) has released the list of services that would attract the 17.5 percent Value Added Tax (VAT) and National Health Insurance Levy (NHIL). The GRA in a letter to Bankers and Banks said the 32 fee-based services would attract the tax from July 1, 2014. The amendment of the VAT law […]<\/p>\n","protected":false},"author":14,"featured_media":23115,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[19],"tags":[43,485,652,38,4],"yoast_head":"\n