Ghana Unveils Major VAT Reforms: COVID Levy Scrapped, Flat Rate Ends, Higher Thresholds from 2026

The 1% COVID-19 Levy is abolished, reducing the overall VAT burden.
The VAT registration threshold increases from GHS200,000 to GHS750,000, exempting many small businesses.
The 3% VAT Flat Rate Scheme is scrapped; a unified VAT system is introduced with a total rate of 20% (VAT: 15%, NHIL: 2.5%, GETFund Levy: 2.5%).
VAT-registered businesses can now claim input tax on NHIL and GETFund Levy, improving cash flow and reducing net VAT liability.
New digital compliance measures, sector-specific benefits (e.g., mining and textiles), and a VAT Reward Scheme are being introduced to enhance administration and compliance.

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.