Ghana Revenue Authority Expands Digital VAT Collection to Mobile Payments
The Ghana Revenue Authority (GRA) has clarified that its digital VAT collection system will now cover payments made through mobile and other digital payment platforms, not just bank cards.
In Brief
- •The Ghana Revenue Authority (GRA) has clarified that its digital VAT collection system will now cover payments made through mobile and other digital payment platforms, not just bank cards.
- •The system will split qualifying payments into tax and merchant components, with the tax portion remitted to the government.
- •The GRA aims to collect VAT from approximately 100 additional foreign digital service providers that are currently not charging VAT.
Why It Matters
This expansion of the digital VAT collection system is significant for Ghana's tax administration and the broader economy. It ensures that foreign digital service providers are held accountable for their VAT obligations, which can help improve tax compliance and revenue collection. Additionally, this reform can simplify the tax process for consumers by automating the collection and remittance of VAT, reducing the administrative burden on both the government and service providers.
Key Details
- Tax Rate
- 20%
- VAT Component
- 15%
- National Health Insurance Levy
- 2.5%
- GETFund Levy
- 2.5%
- Current VAT Remitting Companies
- 92
- Additional Providers to be Collected
- 100
Context & Background
The Ghana Revenue Authority (GRA) has been working on a Real-Time VAT framework to cover electronically supplied services from non-resident providers paid for through Ghana-issued payment instruments. This framework aims to improve tax compliance and revenue collection for digital services.
Original Reporting & Sources
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