VAT rates in Ghana

Quick overview

Standard Rate	Reduced Rate	Other Rates
12.5%	3%	Zero-rated (0%) and exempt

The local name for VAT in Ghana is Value-added tax (VAT).

There are basically 2 VAT rates in Ghana:

• Standard VAT rate is 12.5%
• Reduced VAT rate is 3%

Recent developments

For more information about (recent) rate change developments in Ghana, please click HERE.

Standard rate: 12.5%

This rate applies for all transactions that take place in Ghana, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Reduced rate: 3%

Examples of goods and services taxable at 3%

A retailer or wholesaler has to account for VAT at a flat rate of 3% (VAT Flat Rate Scheme (VFRS)). No input VAT can be claimed.

Zero rate (0%)

Examples of goods and services taxable at 0%, with the right to deduct VAT

• Exports of taxable goods
• Exports of taxable services
• Goods and services supplied to Free Zone
• Goods shipped as own stock on a vessel or aircraft leaving the territories of Ghana

Exempted from VAT without the right to deduct

• Agricultural and aquatic products in their raw state
• Domestic transportation
• Medical services and supplies
• Agricultural inputs, animals, livestock and poultry
• Provision of accommodation in a residential property

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on October 17, 2021.

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