VAT SERVICE CLOSED DOWN NON-REGISTERED COMPANIES (page 46, Nov 19)

FOR the first time since the amendment of the Value Added Tax (VAT) Law in 2009, the VAT Service has sealed off the premises of enterprises that have refused to register with the service.
They are Quality Stores at Opera Square and Lady Dodzi Enterprises on the Spintex Road, both in Accra.
The VAT Amendment Law, 2009 empowers the Commissioner of the VAT Service to seal off premises of businesses which refuse to register with the service.
Even though it is the usual practice for the service to seal off premises of defaulting clients at the end of the year, the sealing off of the affected enterprises is the first time it is invoking such powers conferred on the commissioner by law.
The Director of the Okaishie VAT sub-office, Mr Dela Heloo, said the office had first sent 30 days’ notices to enterprises that had not registered with VAT to do so.
The exercise, according to him, prompted many enterprises in the Okaishie area to register with the service.
After several prompting, including official correspondence by the VAT Service, Quality Stores still refused to register.
"After using all means to get the shop to register, the only option left was to take distress action," he said.
He said enterprises that had have their premises sealed off would have to pay a penalty when they registered afterwards.
At the time of sealing off Quality Stores, the owner was absent.
Mr Heloo said the sub-office held meetings with traders within its jurisdiction to educate them on the importance of registering with the service and the benefits of VAT to the country.
He advised traders to help the service in the administration of its services by registering with the service and told customers to also insist on VAT invoices whenever they purchased goods from shops.