Value Added Tax Administration In The Construction Industry In Ghana Dadson Awunyo-Vitor Department of Agricultural Economics and Agribusiness, Kwame Nkru- mah University of Science and Technology, Ghana Address for correspondence:-
[email protected] Journal of Finance and Management in Public Services. Volume 14. Number 2 Abstract The objective of the study is to assess the level of awareness of contractors and consultants within the construction industry about Value Added Tax (VAT) and challenges of its admin- istration or implementations within the industry. Data was collected from 52 contractors and 8 consultants in Brong Ahafo Region of Ghana using questionnaires. Descriptive statis- tics were used to analyse the data. The study revealed that a large proportion (75%) of the respondents were aware of the need to register and charge Value Added Tax as a result of sensitisation workshops organised by Ghana Revenue Authority in the region. The consult- ants perceive the implementation of the Value Added Tax as important in national develop- ment, however, they see the registration process as cumbersome. Contractors also had a good perception about Value Added Tax implementation within the construction industry but believed that they need more education about the modalities of registration and pay- ment. The study further revealed that the state lost GH¢ 8,053,407.52 ($5,033,379.70) in the 2012 fiscal year due to non-compliance with Value Added Tax by contractors and consult- ants in the region. In order to improve the implementation of Value Added Tax within the construction industry Ghana Revenue Authority must intensify education of contractors on modalities of registration and payment.