- The Ghana Revenue Authority (GRA) has introduced a new VAT rate of 20% effective January 1, 2026, replacing the previous 21% rate, aiming to simplify tax payments and boost revenue.
- The new regime abolishes the flat rate, recouples the National Health Insurance Levy (NHIL) and Ghana Education Trust Fund (GETFund) as input taxes, and eliminates the COVID-19 levy.
- The VAT registration threshold has been raised from GH¢200,000 to GH¢750,000, reducing compliance burdens for small businesses.
- The reforms include digitisation through the E VAT system, improved compliance, and are expected to lower production costs and promote economic growth.
- These changes align with IMF recommendations to streamline tax collection and enhance domestic revenue mobilisation.
Source: newsghana.com.gh
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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