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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