Abstract:
The study examines the VAT flat rate scheme for retail businesses in Mfantseman Municipal Assembly. An explanatory research design was employed as well as a quantitative research approach relative to the research objectives. Descriptive statistical tools, such as frequency and percentages analysis were used to analyze the research objectives. The study used primary data for the analyses. With respect to the sampling method, proportionate random sampling techniques were employed to select the 120 participants from the accessible population. The results showed that VAT compliance level among the retailers is weak. This is because the retailers only issue invoices to their customers when they demand it which is contrary to the law. The results also revealed that majority of the respondent indicate that the VAT flat scheme have affected their retail business negatively because it has slowed down their profit as well as their sales. Finally, the results also indicate The VAT flat scheme has slowed down work of the retailers e.g. issue of VAT invoice. The study concludes that most retailers or VAT collectors in the Mfantseman Municipal Assembly are not used to issuing VAT invoices and that those who even do that do so upon customer request. The study finally recommends that GRA officials should addressed the challenges encountered by the retail operators in order to enable the policy achieve it intended purpose. Finally, the researcher made suggestions for future studies.
