Digital VAT collection to cover mobile payments, not just bank cards – GRA

The Ghana Revenue Authority (GRA) Commissioner-General, Anthony Kwasi Sarpong, announced that the digital VAT collection system will cover payments made through mobile and other digital platforms, rather than solely bank cards. During an interview on Joy FM’s Super Morning Show, Sarpong clarified that the new system will capture qualifying payments for foreign digital services such as Netflix, Spotify, and other online subscriptions.

This approach aims to improve the GRA's ability to track transactions and collect taxes from foreign providers.

Sarpong explained that the tax component will be separated from the merchant or service provider's share when a qualifying payment is processed. Payments made through digital platforms will have the tax component transferred to a government account, while the remaining amount goes to the merchant or provider. The system will not increase the cost of subscriptions, as the 20% tax is already included in the prices consumers pay.

The Real-Time VAT framework applies to electronically supplied services from non-resident providers paid for through Ghana-issued payment instruments. Currently, about 92 foreign companies remit VAT to the Authority, and the reform will not change their pricing. The GRA aims to bring about 100 additional providers into the system gradually.