- Ghana’s GRA launched a real-time VAT (RTVAT) system for qualifying cross-border digital services, using the Sentinal platform to withhold VAT at the point of payment and remit it directly to the tax authority.
- The rule applies where the payment instrument is Ghana-issued, the merchant is nonresident, and the supply is electronic; examples include streaming, subscriptions, cloud services, online gaming, and online marketplaces. Imported physical goods are excluded.
- Banks, mobile money operators, payment processors, aggregators, and other licensed payment institutions must integrate with the system and withhold/remit VAT, with customers notified by SMS or email.
- Nonresident digital service providers still must register for VAT and file monthly returns; RTVAT does not replace that obligation. VAT withheld in real time is expected to be credited against the supplier’s liability, though detailed reconciliation rules are not yet published.
- GRA says about 92 nonresident providers are already registered, while around 100 others are not charging VAT and will be brought into compliance; noncompliance can trigger penalties of at least three times the VAT due and possible access restrictions.
Source: kpmg.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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