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2026 VAT architecture
Ghana NHIL and GETFund Levy
The two 2.5% levies now sit beside 15% VAT on the same taxable value—with input deductions restored subject to the statutory rules.
Published by MSL Business School.
MSL Business School — 2026 quick reference
Direct answer
NHIL and GETFund are separate 2.5% components—not an additional cascading base.
From 1 January 2026, a standard-rated supply generally carries 15% VAT + 2.5% NHIL + 2.5% GETFund Levy, each calculated on the same taxable value. This produces an effective 20% stack.
2026 treatment: Act 1151 places VAT, NHIL and GETFund Levy on the same taxable value and abolishes the COVID-19 Health Recovery Levy.
Three components
The invoice separates each amount.
| Component | Rate | Applied to | Current input treatment |
|---|---|---|---|
| Value Added Tax | 15% | Taxable value | Deductible subject to Act 1151 conditions |
| National Health Insurance Levy | 2.5% | Same taxable value | Deductible subject to Act 1151 conditions |
| Ghana Education Trust Fund Levy | 2.5% | Same taxable value | Deductible subject to Act 1151 conditions |
| Total standard stack | 20% | Taxable value | Each component accounted for separately |
A transaction can be zero-rated, exempt, relieved, out of scope or subject to a special rule. The 20% stack is not a universal rate on every payment.
Calculation base
Start with the taxable value determined under the VAT Act.
The taxable value is not always the cash line called “price.” Act 1151 supplies valuation rules for money and non-money consideration, connected persons, imported goods and services, adjustments and special cases.
Where GHS 1,000 is the tax-exclusive value, calculate each component directly on GHS 1,000.
Where GHS 1,200 is a fully tax-inclusive standard-rated amount, the combined tax is GHS 200 and the underlying value is GHS 1,000.
Use the statutory time and value rules. A later reduction may require a credit note and output-tax adjustment.
Open-market-value rules can replace stated consideration where the statutory conditions are met.
Standard exclusive calculation: taxable value × 15% VAT; taxable value × 2.5% NHIL; taxable value × 2.5% GETFund.
Standard inclusive extraction: inclusive amount ÷ 1.20 = taxable value; inclusive amount × 1/6 = combined tax.
Input credits restored
Input NHIL and GETFund can now be deducted—if every condition is satisfied.
Act 1151 integrates the levy components into the input-tax mechanism. A registered taxable person does not receive an automatic deduction merely because a supplier charged tax.
- 01Registered taxable person
The claimant must be properly registered and acting in the taxable activity for which the deduction is claimed.
- 02Taxable-use connection
The acquisition or import must be used, or intended for use, in making taxable supplies, subject to apportionment and statutory exclusions.
- 03Valid evidence
Hold the prescribed tax invoice, customs entry or other evidence required by Act 1151 and GRA's invoicing system.
- 04Claim within the permitted period
Account for the claim in the correct return and within the statutory time limit.
- 05Keep the components separate
Record VAT, NHIL and GETFund output and input amounts separately so each return field reconciles.
Blocked or mixed use: private consumption, exempt activity and specifically restricted acquisitions can reduce or eliminate the deduction. Apply apportionment where an input supports both taxable and exempt supplies.
Tax invoice
Show all three components clearly.
| Illustrative invoice line | Amount |
|---|---|
| Taxable value | GHS 1,000.00 |
| VAT at 15% | GHS 150.00 |
| NHIL at 2.5% | GHS 25.00 |
| GETFund Levy at 2.5% | GHS 25.00 |
| Total amount payable | GHS 1,200.00 |
Monthly compliance
Reconcile output, input, adjustments and payment by component.
For the standard monthly VAT cycle, the return and payment are due by the last working day of the following month. The return must reflect the correct tax period and separate VAT, NHIL and GETFund positions.
Tax attributable to supplies, debit adjustments and other output events in the period.
Allowable input components supported by qualifying evidence and claimed in time.
Output less allowable input, adjusted for credit notes, bad debts or other permitted events.
Invoice sequence, sales, purchases, customs entries, credit notes, apportionment and return reconciliation.
Border and imported services
Imports require the same three-component discipline.
Taxable imported goods are assessed using the import valuation rules and Customs process. Imported services can create a reverse-charge or other recipient-side obligation where the statutory conditions apply.
Customs value and applicable duties feed the statutory VAT value. Confirm exemptions, reliefs and documentation before clearance.
Identify the recipient, place of supply, taxable use and time of supply; do not treat every foreign invoice identically.
Keep the approved customs declaration and payment evidence needed to support any input deduction.
An exemption from one border charge does not automatically remove VAT, NHIL or GETFund. Read the exact enabling provision.
Worked examples
Three common calculations
| Scenario | Calculation | Result |
|---|---|---|
| GHS 2,000 exclusive standard-rated supply | VAT 300 + NHIL 50 + GETFund 50 | GHS 2,400 total |
| GHS 6,000 inclusive standard-rated supply | Value 6,000 ÷ 1.20; combined tax 6,000 × 1/6 | GHS 5,000 value; GHS 1,000 tax |
| GHS 10,000 exclusive value with qualifying input VAT of GHS 300, input NHIL of GHS 50 and input GETFund of GHS 50 | VAT: 1,500 − 300; NHIL: 250 − 50; GETFund: 250 − 50 | VAT 1,200 + NHIL 200 + GETFund 200 = GHS 1,600 net |
Frequently asked questions
NHIL and GETFund questions
Are NHIL and GETFund included in the 15% VAT rate?
No. They are separate 2.5% components. Together with 15% VAT, the standard stack is 20% of taxable value.
Is VAT calculated on top of NHIL and GETFund in 2026?
No. Under the current architecture, all three components are calculated on the same taxable value.
Can a business deduct input NHIL and GETFund?
A registered taxable person may deduct qualifying input components subject to the use, evidence, timing, apportionment and restriction rules in Act 1151.
What happened to the COVID-19 levy?
It was abolished as part of the VAT reforms effective from 1 January 2026.
When is the monthly return due?
The standard monthly VAT return and payment are due by the last working day of the following month.
Controlling framework
Read the levy statutes together with the 2025 VAT Act.
- Value Added Tax Act, 2025 (Act 1151)Current VAT architecture, taxable value, output and input mechanisms, invoicing, imports, returns and transitional rules; effective 1 January 2026.
- National Health Insurance Act, 2012 (Act 852), section 47(2), as amendedStatutory basis for the 2.5% NHIL component.
- Ghana Education Trust Fund Act, 2000 (Act 581), section 3A(2), as amendedStatutory basis for the 2.5% GETFund Levy component.
- Value Added Tax Regulations, 2016 (L.I. 2243)Preserved only to the extent that a provision is not inconsistent with Act 1151 or later law.
- GRA VAT Act 1151 implementation guidelinesOfficial administrative guidance; useful for implementation but subordinate to legislation.
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TaxLawGH is MSL Business School's Ghana tax education platform.
We separate the rate, base, invoice and deduction rules so businesses can move from headline tax to a defensible return.
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