GRA Sets January 2026 for New VAT Regime, Raises Threshold, Cuts Rate, Abolishes Flat Scheme

The Ghana Revenue Authority (GRA) will implement the new Value Added Tax Act, 2025 (Act 1151) starting January 1, 2026.
Key changes include raising the VAT registration threshold from GH¢200,000 to GH¢750,000 and abolishing the VAT Flat Rate Scheme.
The standard VAT rate will be reduced to 20%, and the COVID-19 Health Recovery Levy will be removed.
Businesses can now claim input tax credits on the National Health Insurance Levy (NHIL) and Ghana Education Trust Fund (GETFund) levies.
The reforms aim to simplify VAT administration, promote compliance, and ease the tax burden on smaller businesses and households.

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.