- Ghana’s VAT compliance gap was very large in 2024: about 70% of potential VAT revenue under the then-current rules, equal to GH₵69 billion or 5.9% of GDP.
- Compliance has worsened since 2013, with the sharpest deterioration after 2022; Ghana now collects less than one-third of potential VAT.
- Import VAT non-compliance drove much of the increase, while domestic non-compliance was even higher at 77% of domestic VAT potential in 2024.
- Wholesale and retail trade accounted for 47% of the domestic compliance gap; construction and manufacturing added another 33%, together making up about 80% of domestic VAT losses.
- VAT exemptions reduced potential revenue by GH₵48 billion (4.1% of GDP) in 2024, with agricultural product exemptions alone accounting for 64% of the total revenue foregone; mining and petroleum showed negative gaps, suggesting under-refunded or unclaimed credits.
Source: taxdev.org
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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