Ghana’s 2025 VAT Reform: Key Changes, IMF Guidance, and Mid-Year Budget Highlights

• Ghana’s 2025 VAT reform addresses tax neutrality concerns raised by the IMF.
• The government plans to repeal the COVID-19 levy and separate GETFund and NHIL from VAT.
• The effective VAT rate will be reduced, and the cascading effect of certain levies will be removed.
• The 3% and 5% VAT flat rates will be eliminated, unifying all rates into a standard VAT rate.
• The VAT registration threshold will be increased from GHS 200,000.
• Measures will be introduced to boost voluntary compliance and require fiscal electronic devices.
• The new VAT law is set to be presented to Parliament by October 2025.
• The reform aims to align with international best practices and improve tax neutrality.

Source: vatabout.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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