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MSL Business SchoolTourism operator collection and monthly compliance
Ghana Tourism Levy
How Ghana's 1% Tourism Levy applies to patrons of tourism enterprises and what registered operators must do to collect, invoice, report and remit it.
Published by MSL Business School.
MSL Business School — Tourism operator collection and monthly compliance at a glance
Controlling answer
The patron bears the levy; the tourism operator collects and remits it.
A licensed tourism operator must register with the Ghana Tourism Authority as a levy collector. The operator charges the patron 1% on covered tourism goods and services, excluding existing taxes from the levy calculation, issues the prescribed invoice, files a monthly return and remits the amount collected within one month after the collection period ends.
Tourism operator collection and monthly compliance
Start with the licensed tourism enterprise and the patron's consumption
Act 817 finances the Tourism Development Fund partly through a one percent levy payable by patrons of tourism enterprises on goods and services consumed. The Schedule to Act 817 covers accommodation, food and beverage enterprises, entertainment venues, travel-trade businesses, banqueting and conference facilities, spas, tourist sites, resorts and other tourism-related enterprises and activities.
The customer bears the one percent levy on covered goods or services consumed.
The licensed operator registers as the Authority's collection agent and accounts for the levy.
The establishment or activity must fall within the statutory tourism-enterprise framework.
Collected amounts are paid into the Fund account established under Act 817.
Separate legal obligations: Tourism Levy registration and payment do not replace the operator's VAT, income-tax, licensing or other statutory obligations.
Tourism operator collection and monthly compliance
Apply one percent to the covered charge before existing taxes
Regulation 9 requires the Authority to disregard amounts representing existing taxes charged and collected when calculating the Tourism Levy.
| Calculation step | Treatment |
|---|---|
| Covered tourism goods or services | Identify the charge for the goods or services consumed by the patron. |
| Existing taxes | Exclude amounts representing existing taxes from the Tourism Levy base. |
| Tourism Levy | Apply 1% to the resulting covered charge. |
| Invoice total | Show the Tourism Levy distinctly with the required invoice particulars. |
Do not estimate by habit: where sales data are unreliable or invoices or receipts are not issued, the Authority may assess the levy using an estimated volume of sales or services.
Tourism operator collection and monthly compliance
Register before commencing the tourism operation
- 01Hold the tourism-enterprise licence
L.I. 2185 applies to a person licensed under Act 817 to operate a tourism enterprise.
- 02Submit the levy registration form
Provide the prescribed particulars to the Ghana Tourism Authority before commencing operations.
- 03Receive the certificate and account number
The Authority registers the operator as a collection agent and assigns a Tourism Levy Account Number.
- 04Display and use the registration
Display the certificate at the principal place of business and quote the account number in levy correspondence.
- 05Report changes
Notify the Authority in writing when registered particulars change.
Tourism operator collection and monthly compliance
Issue the prescribed levy invoice and preserve the audit trail
The invoice identifies the operator, the transaction and the levy charged. It must include the operator's name, address and registration number; supply date and time; consecutive invoice number; customer details where the customer is also a tourism operator; a description and quantity of the goods or services; and the total Tourism Levy charged.
Use the Authority's invoice unless written authority permits the operator to print the prescribed form.
It may be used with the Authority's permission and must retain information needed to verify levy transactions.
Keep each levy transaction for five years after the calendar year in which the record was created.
The Authority may direct the operator to retain specified records beyond five years.
Supporting records include the registration certificate, levy account, sales journals, cash books, ledgers, invoice copies, guest registration forms, daily sales records and relevant audit reports.
Tourism operator collection and monthly compliance
File the return and remit the levy within one month
| Requirement | Timing |
|---|---|
| Collection period | One calendar month. |
| First period after commencement | From the commencement date to the end of that first collection period. |
| Tourism Levy return | Not later than one month after the end of each collection period. |
| Remittance | Not later than one month after the end of each collection period. |
The return states the levy for the period and any other prescribed matter. L.I. 2185 permits submission through the Authority's established electronic filing system, email, fax, expedited mail or hand delivery. Payment is made into the Fund bank account through an authorised method or receiving bank.
Tourism operator collection and monthly compliance
Reconcile levy sales before an Authority audit
The Ghana Tourism Authority may audit an operator's records to determine whether the correct levy was recorded and remitted. An audited shortfall remains payable with the interest and enforcement consequences prescribed by L.I. 2185.
- 01Reconcile monthly sales
Bridge daily sales and invoices to the levy account and monthly return.
- 02Separate existing taxes
Show clearly how existing taxes were excluded from the levy base.
- 03Trace the remittance
Retain the return, payment evidence and bank or Authority acknowledgement.
- 04Correct differences promptly
Address understatements and missing returns before enforcement costs increase.
Late return: L.I. 2185 imposes a daily penalty equal to one percent of the amount for each day of default for up to one month, after which the Authority may pursue the principal, interest, accrued penalty and related legal fees.
Customer-bill-to-tourism-levy reconciliation
Daily sales, levy collected and the monthly return should reconcile before payment.
Match the operator, Tourism Authority registration, facility and levy account.
Classify accommodation, food, beverage, entertainment or other charge under the levy law.
Identify the qualifying charge and show the levy separately from VAT and service charges.
Reconcile point-of-sale, room, restaurant, event, cash and electronic-payment records.
Document cancellations, refunds, complimentary services, discounts and bad-debt treatment.
Aggregate daily covered charges and levy collected into the prescribed return.
Match the liability to payment evidence and the relevant Tourism Fund or administrative record.
Reconcile levy returns to turnover, VAT returns, bank receipts and financial statements.
Frequently asked questions
Ghana Tourism Levy questions
What is the Ghana Tourism Levy rate?
The statutory rate is one percent on covered goods and services consumed by patrons of tourism enterprises.
Who pays the Tourism Levy?
The patron bears the levy, while the registered tourism operator collects, reports and remits it to the Ghana Tourism Authority.
Are existing taxes included in the Tourism Levy base?
No. L.I. 2185 requires existing taxes charged and collected to be disregarded when the Tourism Levy is calculated.
When is the monthly Tourism Levy return due?
Not later than one month after the end of the monthly collection period.
How long must Tourism Levy transaction records be kept?
At least five years after the end of the calendar year in which the record was created, and longer if the Authority directs.
MSL Business School legal reference map
Primary authority and official sources
- Tourism Act, 2011 (Act 817)Open source →
- Tourism (Levy) Regulations, 2012 (L.I. 2185)Open source →
- Ghana Tourism AuthorityOpen source →
Institutional publisher
TaxLawGH is MSL Business School's Ghana tax education platform.
MSL Business School publishes TaxLawGH to make Ghana's tax law easier to find, understand and apply.
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