PT – March 2023 – L2 – Q2a – Value-Added Tax (VAT), Customs, and Excise Duties

Explain the exceptions to the turnover rules under section 11 of the VAT Act.

Question

Despite the turnover rules stated under section 6 of the Value Added Tax Act, 2013 (Act 870), there are certain exceptions to the turnover rules under section 11 of the same Act.

Required:

Explain the exceptions to the turnover rules under section 11 of the Value Added Tax Act 2013 (Act 870).

Answer

(i) A promoter of public entertainment,
(ii) An auctioneer, or
(iii) A national, regional, local, or other authority or body which carries on any taxable activity shall apply for registration.

Registration of these persons or entities occurs under the following conditions:

Promoter of Public Entertainment:
Must apply for VAT registration at least 48 hours before the commencement of the public entertainment if, within any period of 12 or fewer months, the total value of taxable supplies is expected to exceed GHS 10,000.
Auctioneer:
Must apply for VAT registration within 30 days after becoming an auctioneer.
National, Regional, or Local Authority or Body:
Must apply for VAT registration within 30 days after commencing a taxable activity.

Tags: Registration Exceptions, Tax law, Turnover Rules, VAT
Level: Level 2

Topic: Value-Added Tax (VAT), Customs, and Excise Duties
Series: MAR 2023

Uploader: Kwame Aikins