The threshold is the magnitude or intensity that must be exceeded for a certain reaction, phenomenon, result, or condition to occur or be manifested.
Threshold For VAT Registration In Ghana
Ghana is to increase its VAT registration threshold. The new level at which businesses (companies and unincorporated entrepreneurs) must compulsory VAT register is Ghananian Cedi GHS 200,000, up from the previous GHS 120,000.
This threshold applies to any 12 month period. Companies that bill more than 25,000 in a three-month period and expect to continue at the same rate of sales must VAT register.
The option for voluntary registration remains.
Who qualifies to register for VAT?
A vendor making taxable supplies of more than R1 million per annum must register for VAT.
A vendor making taxable supplies of more than 2,059.54 Ghana Cedi but not more than 411,908.32 Ghana Cedi per annum may apply for voluntary registration. Certain supplies are subject to a zero rate or are exempt from VAT.
What are the disadvantages of being VAT registered?
Some of your clients and customers may not be VAT registered (which means they cannot reclaim the VAT on items) and therefore any products or services that you sell with VAT may be too expensive or unreasonably overpriced for these customers.