Vat Service Holds Seminar for Contractors

Published on 2nd Nov, 2009, Daily Graphic, pg 38

Story: Matilda Attram
THE Value Added Tax (VAT) Service has organised a day’s seminar to educate building and civil engineering contractors on VAT.
Addressing the participants, the Head of the Adabraka Local VAT Office, Mr Gabriel Kontor-Adampah, said building and civil engineering contractors were agents of VAT and were required to ensure that their clients paid VAT/NHIL.
He explained that the Ministry of Finance and the VAT Service were the only two entities which could grant exemptions.
He said although civil engineering works were VAT exempt, professional services such architectural or surveying services on government work were VAT/NHIL chargeable.
Mr Kontor-Adampah explained that the VAT Service was one of the revenue agencies which mobilised the country’s monetary concerns for national development, adding, “We need to look for ways and means that will help generate internal revenue for the country and the construction sector is an important area to look at.”
He said the service collaborated with surveyors and other stakeholders to sensitise them to the construction law since its amendment in June 2002.
The Deputy Head of the Adabraka Local VAT Office, Mr William Narh-Paddie, in a presentation, emphasised that the enactment, as well as the amendment, of the construction law exempted civil engineering works of government contract unless such projects were deemed private.
He, therefore, urged participants to register their businesses, keep records of relief forms and notify the VAT Office when they were out of business to avoid the payment of penalties.
The Greater Accra Chairman of the Building and Civil Engineering Contractors Association, Mr Edward Amanor, used the opportunity to appeal to the VAT Service to consider the association when initiating policies.