- Ghana’s VAT system became overly complex due to multiple amendments, special rates, and overlapping levies, leading to compliance challenges and reduced voluntary tax compliance.
- The government responded by passing the Value Added Tax Act, 2025 (Act 1151), effective 1 January 2026, which repeals and replaces the previous VAT Act and consolidates several indirect tax reforms.
- The new law aims to simplify the VAT regime, improve compliance, and work alongside reforms to the National Health Insurance Act and the Ghana Education Trust Fund Act.
- The article explains the key features and impacts of the new VAT Act on consumers, businesses, and the economy, and offers practical recommendations for taxpayers and policymakers.
Source: ghanaweb.com
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.
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