Tax revenues from VAT are currently one of the essential sources of income for the federation.
There is a lot of information to explain and I am sure that right now you are wondering, what exactly is the structure of the VAT Law ? Therefore, I will share more details below so that you can understand it.
Structurally, the Value Added Tax Law has nine chapters in which 43 articles are grouped, which deal with everything from rates, taxes or obligations to credit balances, compensations and monthly calculations.
As I mentioned, everything is divided into ghana phone data the 16 percent rate, the 0 percent rate, and also the “exemption regime” rate.
One of the most notable points within these chapters is the one established in the first article, which tells us that all those people to whom VAT is transferred must retain it, since in this way the importance of the figure of the tax transfer is derived.
With the above we can realize that since it is not a direct tax, the entire economic burden may fall on the person who provides their services or grants the use of temporary goods.
Some of the most important features of the Value Added Tax Law ( LIVA ) are the following:
It is an indirect tax, since it can economically affect people completely different from the original taxpayer.
It is a general tax. It can tax all activities and acts that are subject to the LIVA .
It is a permanent tax. It does not have a well-defined validity.
It is a regressive tax, since all the taxes that people pay are not related to the wealth they possess.
VAT Classification
To continue discovering the importance of VAT in the country, we must first analyze the context it has had on its finances.
There are different ways of classifying public revenues and the importance of each one of them. These can be grouped into different categories such as.