The Ghana Revenue Authority (GRA) has confirmed that it will begin the implementation of the value added tax reforms from 1st January 2026.
This follows the passage and subsequent presidential assent given to the VAT Bill 2025.
This development marks a significant overhaul to simplify the country’s tax system, consolidate laws, abolish the COVID-19 Levy, and improve compliance through digitisation in revenue administration.
The law is also aiming for greater fairness and economic growth as the country makes progress to enhance domestic tax mobilization.
The reform is part of the recommendations from the International Monetary Fund to reduce bureaucracies in tax collection.
Key changes include unifying the flat-rate system, reducing effective rates, allowing deduction of GETFund/NHIL as input tax, and boosting revenue efficiency.
This will also include the deployment of digital channels like the E-VAT for accurate collection.
Speaking to Journalists on the new VAT, Commissioner for Domestic Tax Revenue Division, Dr. Martin Kolbil Yamborigya explains that customers will now be required to pay 20 % instead of 21.9% on their goods and services.
There will be a lot benefits for the tax payer because we have now re-coupled the National Health Insurance Levy and Ghana Education Trust Fund (GETFUND), so it will bring down the amount to be paid. This will mean that some savings will be made by businesses and also the fact that it has become an input tax to be claimed at the end of the day” he said.
The bill was passed in November this year after it was presented to parliament during the 2026 Budget statement and economic policy presentation.
The presidential assent gives more backing to the Ghana Revenue Authority to go ahead with the implementation of the reforms in the law.
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