- Ghana’s VAT framework now applies to cross-border digital services supplied by non-residents for use in Ghana; this is not a new tax, but a mechanism to enforce existing VAT through real-time collection.
- Under the Value Added Tax Act, 2025 (Act 1151), taxable cross-border digital services include streaming, software, cloud services, online courses, gaming, digital marketplaces, online advertising, remote maintenance, and certain digital-asset management services.
- A digital service is treated as supplied in Ghana if any two of four connection indicators are met, including Ghana residency of the recipient, payment through a Ghanaian payment channel, a Ghana address/phone/proxy, and receipt on a device in Ghana.
- Section 15 targets non-resident suppliers of telecommunications and electronic commerce services used or enjoyed in Ghana, but an online payment alone does not automatically trigger RTVAT; the service nature, supplier residence, customer connection, and place-of-supply rules still matter.
- The success and legitimacy of RTVAT will depend on accurate classification, transparent administration, and safeguards against duplicate or incorrect VAT charges.
Source: newsghana.com.gh
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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