Ghana Implements New VAT Act 2025: Higher Threshold, Abolished Levies, and Updated Guidelines

The Value Added Tax Act, 2025 (Act 1151) will take effect in Ghana from 1 January 2026.
The VAT registration threshold for companies supplying goods is increased to GHS 750,000.
The 1% COVID-19 health recovery levy is abolished.
The national health insurance levy (2.5%) and GETFUND levy (2.5%) are now fully deductible as input taxes.
The VAT flat rate scheme is abolished, and the total effective VAT rate is now 20% (15% standard VAT plus 5% levies).
Administrative guidelines were published to assist with the implementation and ensure consistency.

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.