- VFRS is a special method of collecting and accounting for VAT/NHIL for VAT-registered retailers of taxable goods.
- It is designed for retailers with an annual turnover between GHC200,000 and GHC500,000.
- VFRS simplifies the process of collecting VAT/NHIL and eliminates the need for obtaining invoices for input tax claims.
- The tax payable under VFRS is a flat rate of 3%.
- VFRS is an alternative to the standard VAT scheme and is only applicable to retailers of taxable goods.
- VFRS does not change the tax status of exempt, zero-rated, and relief supplies.
- VFRS operators are required to issue VAT/NHIL and COVID-19 HRL Flat Rate Scheme invoices.
- Relevant VAT downloads are available for further information and resources.
Source: gra.gov.gh
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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