- Introduction of New VAT Framework: Effective January 1, 2026, Ghana has unified its VAT rate at 15% and abolished previous flat rates for certain supplies, imposing new registration rules that require all businesses providing taxable services to register regardless of revenue, thereby increasing compliance requirements and administrative burdens.
- Stricter Penalties and Compliance Measures: The new laws introduce enhanced penalties for VAT nonregistration and tax evasion, including penalties of up to three times the unpaid tax and increased upfront payments for unregistered importers, emphasizing the need for proactive compliance among businesses.
- Significant Operational Implications: Multinational enterprises must recalibrate pricing strategies, contract terms, and operational processes in response to these changes, particularly regarding the treatment of relief supplies and the expanded definition of digital services, which now requires VAT registration for nonresident suppliers.
Source EY
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