Real-Time VAT on cross-border digital services – not a new tax and does not violate double taxation principle

In September 2026, Ghana's digital economy saw the introduction of a Real-Time Value Added Tax (RTVAT) system to improve efficiency in revenue mobilization and close the VAT collection gap. RTVAT is not a new tax, but rather a mechanism for collecting VAT on cross-border digital service transactions already due. It was launched by the Ghana Revenue Authority (GRA) under Commissioner General Anthony Kwasi Sarpong and Commissioner Dr Martin Kolbil Yamborigya.

Under the RTVAT Framework, qualifying cross-border digital service transactions are identified, monitored, and collected in real time using the Sentinel® system. These transactions include online subscriptions, streaming services, cloud services, online gaming, online marketplaces, and online advertising. Both registered and non-registered non-resident digital service providers are in scope.

For customers and taxpayers, RTVAT is collected through participating payment platforms, with the VAT component automatically separated and remitted to the GRA. The rate is 15% VAT plus a combined levy of 5% for GETFund and NHIL, totaling 20%. Customers will not pay VAT twice, as merchants displaying prices exclusive of VAT and notifying customers of the VAT charge at the point of payment ensures no double taxation. If customers are wrongfully charged, they should notify their bank or Electronic Money Issuer (EMI).

For non-resident digital service providers, RTVAT obligations are simple. Registered providers must display prices exclusive of VAT, notify customers of VAT applicability at the point of payment, and have the VAT charged on their behalf at the point of payment. Non-registered providers must register with the GRA through their online portal. Real-time collection forms part of their reconciliation, even for B2B transactions where the reverse charge may apply.