Same Tax, Collected When You Pay: Bringing fairness to VAT on foreign digital services
Over the past week, many Ghanaians have asked a fair question: will paying for a streaming subscription, cloud storage, or an online game soon cost more because of the introduction of a collection and monitoring system? I understand why people are concerned. Digital services are now part of how we work, learn, run businesses and […]
The Value Added Tax (VAT) on foreign digital services has been collected in Ghana since 2022, following amendments to the Value Added Tax Act. The 20 per cent VAT rate includes 15 per cent VAT, 2.5 per cent National Health Insurance Levy, and 2.5 per cent GETFund Levy. The Ghana Revenue Authority (GRA) has been collecting the tax since its introduction.
Despite concerns from some Ghanaians, the VAT rate has not increased; it remains the same as before. However, the collection process is changing, with the GRA implementing a system to collect VAT at the point of payment through banks, mobile money operators, and other licensed payment companies. This change aims to ensure that foreign digital service providers charge VAT transparently and fairly.
Registered providers will display prices without VAT, while the VAT amount will be added when payment is made. Customers will receive an SMS or email confirmation of the transaction, including VAT. The new system is expected to improve fairness and transparency in the collection of VAT on digital services, benefiting both businesses and consumers.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
