On 9 November 2023, Ghana’s High Court ruled that statutory levies were applicable to the total value of imported services, regardless of the amount subject to value added tax (VAT). The court also ruled that apportionment was necessary for separating taxable supplies from VAT exempt supplies. The taxpayer, operating telecommunications and mobile money services, was held liable to pay VAT on the portion of imported services used to provide exempt supplies. The court also upheld that statutory levies imposed together with VAT are applicable on all imported services, irrespective of whether they qualify as imported services for VAT purposes. Businesses are now required to charge the statutory levies on all foreign-supplied services, representing an additional cost with associated cashflow implications. The judgment is subject to appeal, but until successfully challenged, the High Court’s ruling stands.
Source Deloitte
