Digital VAT system will not impose additional tax – GRA

The Ghana Revenue Authority (GRA) has clarified that its new digital Value Added Tax (VAT) collection system will not introduce a new 20 percent tax. The GRA's Communication Lead confirmed that the system is designed to improve the collection of existing taxes on digitally supplied services by non-resident companies and consumers in Ghana.

Mr. Kyeremeh clarified that the current effective tax rate for such services remains unchanged at 20 percent, comprising 15 percent VAT, 2.5 percent National Health Insurance Levy (NHIL), and 2.5 percent Ghana Education Trust Fund (GETFund) Levy. The new system will operate through participating financial institutions and payment service providers, ensuring the tax component of qualifying transactions is clearly identified and collected at the point of payment.

The GRA aims to enhance transparency and accountability by bringing about 92 non-resident digital service providers already registered to charge and remit VAT into compliance. The system will cover qualifying services like streaming subscriptions, cloud computing, online gaming, and digital advertising. Consumers with existing subscription prices that include the applicable taxes will not face additional charges. The GRA urges consumers with concerns to contact official channels for assistance.