- VAT Implementation on Non-Life Insurance: The Ghana Revenue Authority (GRA) has announced that, starting from 1 April 2025, value-added tax (VAT) will be applied to non-life insurance services as per the Value Added Tax (Amendment) Act, 2023, Act 1107, requiring suppliers to register for VAT and charge the standard rate on policy premiums.
- Input VAT Claims: Insurers providing taxable non-life insurance services can claim input VAT on qualifying expenses. This change aims to align insurance taxation with VAT principles, enhancing revenue collection and optimizing the input-output tax mechanism.
- Proposed Exemption for Motor Vehicle Insurance: A bill is currently before Parliament to exempt motor vehicle insurance from VAT, which would reduce the cost of purchasing this type of insurance once enacted.
Source EY
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