|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%
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.