ISSUED BY THE VAT SERVICE
ZERO-RATING OF LOCALLY PRODUCED PHARMACEUTICALS
THE VAT SERVICE WISHES TO INFORM BUSINESSES IN THE PHARMACEUTICAL INDUSTRY ABOUT THE VALUE ADDED TAX (AMENDMENT) (NO. 2) ACT, 2008 (ACT 765) WHICH MAKES ALL LOCALLY PRODUCED PHARMACEUTICALS ZERO-RATED.
THIS AMENDMENT MEANS THAT, PHARMACEUTICAL COMPANIES THAT MANUFACTURE DRUGS LOCALLY NOW QUALIFY FOR REFUND UPON APPLICATION TO THE COMMISSIONER AS CAPTURED IN SECTION 25 OF THE VAT LAW, 1998, ACT 546 AND SCHEDULE 2 OF THE ACT AS AMENDED. THIS REPLACES SCHEDULE A OF THE VAT LAW (PHARMACEUTICAL EXEMPTIONS).
THE IMPLICATION OF THIS NEW DISPENSATION IS THAT, PHARMACEUTICAL COMPANIES WILL NOW PAY VAT ON ALL IMPORTATION OF ACTIVE INGREDIENTS UPFRONT. ALL INPUT TAXES PAID AT IMPORTATION AND IN PURCHASING OTHER LOCAL INPUTS FOR THE PRODUCTION OF PHARMACEUTICAL PRODUCTS SHALL THEREFORE BE REFUNDED BY THE COMMISSIONER TO PHARMACEUTICAL COMPANIES ON APPLICATION.
FOR FURTHER INFORMATION PLEASE CALL: 021-610030-3 OR TOLL FREE NUMBER 0800-10017 OR EMAIL US ON info@vats.gov.gh
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