- Policy Shift & Timeline: Effective 1 November 2026 (following a transition extension through 31 October 2026), the Ghana Revenue Authority (GRA) is ending the VAT Relief Purchase Order (VRPO) mechanism for upstream petroleum operators, replacing point-of-sale VAT relief with an upfront payment and subsequent refund model.
- Immediate Compliance Mandate: To assist with advance verification and supplier profiling under the upcoming refund regime, operators must provide detailed transaction and identification data for all major suppliers from January 2025 to date within 14 days of the notice.
- Financial & Operational Impact: Although substantive VAT exemptions under existing Petroleum Agreements remain intact, the requirement to pay VAT upfront introduces major working capital and cash-flow pressures for operators and subcontractors, along with heightened audit scrutiny and documentation burdens for refund claims.
Source EY
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