MSL Business SchoolGhana tax authority guide

Value Added Tax in Ghana

Ghana's effective standard VAT rate is 20%, comprising a 15% VAT component, 2.5% NHIL and 2.5% GETFund Levy, each calculated on the same taxable value. This guide explains the rate, registration, invoices, input tax, returns and the current regime under Act 1151.

TaxLawGH is the Tax & Fiscal Policy Education Unit of MSL Business School.

Published and prepared by MSL Business School Legal basis Value Added Tax Act, 2025 (Act 1151) Effective regime 1 January 2026 Currency Ghana cedi (GHS) Status Current based on Ghana tax law as at 16 July 2026

VAT component

15%Current standard-rate component

NHIL

2.5%National Health Insurance Levy

GETFund Levy

2.5%Ghana Education Trust Fund Levy

Effective standard rate

20%Total charge on a standard-rated supply

Registration threshold for goods

GHS 750,000Taxable supplies over a twelve-month period

Registration threshold for services

No thresholdRegister within 30 days after beginning the taxable activity

Ghana's effective standard VAT rate is 20%.

For a standard-rated supply, a VAT-registered supplier charges a 15% VAT component, 2.5% NHIL and 2.5% GETFund Levy. Each component is calculated on the same taxable value. A GHS 1,000 taxable value therefore produces GHS 200 of total indirect tax and a GHS 1,200 tax-inclusive consideration.

Calculate Ghana VAT See all Ghana tax rates

The 2026 reform

Act 1151 replaced the former VAT structure from 1 January 2026.

Same tax base

VAT, NHIL and GETFund are each calculated on the taxable value. VAT is no longer calculated after adding the levies to the base.

COVID levy abolished

The former 1% COVID-19 Health Recovery Levy does not form part of the current VAT calculation.

Flat-rate scheme abolished

The former 3% goods scheme and 5% immovable-property flat-rate treatment are not the current standard VAT system.

Input recovery restored

NHIL and GETFund incurred on qualifying taxable business purchases are deductible when the statutory input-tax conditions are satisfied.

Do not use an old calculator: a calculator that still adds NHIL, GETFund and the former COVID levy before calculating VAT applies the repealed structure and produces the wrong result for a current standard-rated transaction.

Scope of the charge

VAT applies to taxable supplies and specified imports.

Subject to the statutory exemptions, reliefs, zero-rating and place-of-supply rules, the principal categories are:

01
Taxable supplies in Ghana
Goods or services supplied in Ghana by a taxable person in the course of a taxable activity.
02
Imported goods
VAT and applicable levies on taxable imports are collected at importation through the customs collection framework.
03
Imported services
The Ghanaian recipient is responsible for declaring and paying VAT on a taxable import of services. A service incidental to imported goods follows the import treatment for those goods.
04
Non-resident digital services
A non-resident person making taxable telecommunication or electronic-commerce supplies for use or enjoyment in Ghana must register unless the supply is made through a tax-registered agent.

Technical framework

Apply the VAT rules in the correct legal order.

A defensible VAT conclusion starts with the transaction and follows the charging provisions through to evidence and reporting. The headline rate is applied only after the legal character of the supply is established.

01
Identify the supply
Determine whether the transaction is a supply of goods, services, a mixed supply, an import or an activity treated as outside the VAT charge.
02
Establish time and place
Apply the time-of-supply and place-of-supply rules before deciding whether Ghana VAT is chargeable.
03
Confirm the liable person
Identify the supplier, importer, service recipient or non-resident person responsible for the tax and test the applicable registration rule.
04
Classify the treatment
Determine whether the transaction is standard-rated, zero-rated, exempt, relieved or outside the scope of Ghana VAT.
05
Determine value and tax point
Calculate the taxable value and apply any connected-party, import, adjustment or bad-debt rule that affects the result.
06
Evidence, account and report
Issue the required invoice, establish deductible input tax, retain proof and meet the online filing and payment deadlines.

Registration

The registration threshold for goods is GHS 750,000; taxable services have no turnover threshold.

A person making taxable supplies of goods must register when taxable supplies exceed GHS 750,000 in a period of twelve months or less, or when there are reasonable grounds at the end of a month to expect that threshold to be exceeded in the following twelve months or less. A separate three-month test also applies.

Registration threshold for goodsTaxable supplies exceeding GHS 750,000

Existing registrant below thresholdRemains registered until formally deregistered

Three-month goods testOver GHS 187,500 plus projected twelve-month supplies over GHS 750,000

Taxable supply of servicesNo turnover threshold; register within 30 days after engaging in the taxable activity

Non-resident digital supplierDedicated registration rule; no turnover threshold stated

Voluntary registrationApplication permitted when the suitability requirements are met

Important: GHS 750,000 is the goods threshold, not a universal registration threshold. Service suppliers, promoters of public entertainment, auctioneers and non-resident digital suppliers have separate registration rules.

Worked calculation

Standard-rated supply with a taxable value of GHS 1,000

Component	Working	Amount
Taxable value	Given	GHS 1,000
VAT component	GHS 1,000 × 15%	GHS 150
NHIL	GHS 1,000 × 2.5%	GHS 25
GETFund Levy	GHS 1,000 × 2.5%	GHS 25
Tax-inclusive amount		GHS 1,200

Inclusive-price shortcut: if GHS 1,200 already includes the full standard stack, the combined tax is GHS 1,200 × 20/120 = GHS 200. The taxable value is GHS 1,000.

VAT withholding and income-tax withholding^* on the same GHS 1,000 base

Treatment	Working or basis	Result
VAT withholding by an appointed agent	GHS 1,000 taxable output value × 7%	GHS 70
Tax-inclusive invoice	GHS 1,000 + GHS 200 VAT and levies	GHS 1,200
Cash paid before any separate income-tax withholding	GHS 1,200 − GHS 70 withholding VAT	GHS 1,130
Electronic VAT-withholding credit	Generated in GRA's online tax system after the agent files and pays	GHS 70

The 7% is not an additional tax on the invoice: an appointed VAT Withholding Agent retains GHS 70 from the supplier's payment and reports the deduction through GRA's online tax system. Once the filing and payment are correctly posted, the electronic VAT-withholding credit becomes available to the supplier. The supplier continues to account for the VAT and levies charged on the supply.

* Income-tax withholding is governed separately by the Income Tax Act: where the resident contract-payment rule applies, the deduction is calculated on the tax-exclusive amount. In this example, that base is also GHS 1,000; the applicable rate depends on whether the payment is for goods, works or services and on the statutory conditions. See the Ghana withholding tax guide.

Accounting for VAT

Output tax collected is offset by qualifying deductible input tax.

Output tax

VAT and levies charged by the registered supplier on taxable supplies during the tax period.

Input tax

VAT and levies incurred on qualifying business purchases or imports, supported by the prescribed evidence.

Net payable

Output tax less allowable input-tax deductions, subject to adjustments, withholding credits and the statutory rules.

Excess credit

An excess of deductible input tax over output tax is credited and carried forward. A cash refund is available only in the cases and subject to the conditions prescribed by law.

Not every invoice creates a deduction: the purchaser must satisfy the business-purpose, documentation, timing and restriction rules. Exempt activities and mixed supplies can limit recovery.

Invoices and E-VAT

A valid invoice must show the three current charges distinctly.

The current authorised invoice format identifies 15% VAT, 2.5% NHIL and 2.5% GETFund Levy on separate lines. A taxpayer required to use the certified electronic invoicing system must issue invoices through that system.

01
State the taxable value
Show the value before VAT and the levies, subject to the statutory valuation rules.
02
Separate VAT and levies
Identify VAT, NHIL and GETFund individually and show the combined tax and invoice total.
03
Use the authorised system
Issue the prescribed tax invoice or an authorised computer-generated or certified electronic invoice.
04
Retain the record
Keep invoices, credit notes, debit notes, import documents and calculation records for returns and audit.

Returns and payment

The general monthly VAT return deadline is the last working day of the following month.

General VAT and levies returnLast working day of the following month

Payment under the general ruleNo later than the return filing date

VAT withholding agent return15th day of the following month

Imported-services declarationWithin 21 days after the relevant tax period

Non-resident digital-supplier returnLast calendar day of the following month, including weekends and public holidays

File online even when there is no payment: submit the return through GRA's Taxpayers' Portal. Registration creates continuing filing obligations until formal deregistration; a nil position or excess credit does not remove the return requirement.

Special VAT situations

Several transactions need a rule beyond the headline 20%.

Retail VAT Scheme

A taxable retailer must obtain the Commissioner-General's written approval before using a retail scheme. The approved method uses daily gross takings and the applicable tax fraction.

VAT withholding

An appointed VAT Withholding Agent withholds 7% of the taxable output value and reports it through GRA's online tax system. The correctly filed and paid deduction generates the supplier's electronic VAT-withholding credit.

Imports and exports

Taxable imports are charged at importation. Exports are zero-rated only when the statutory and documentary conditions are met.

Digital services

A covered non-resident supplier must register, file online by the last day of the following month and pay the tax due on that date.

Imported services

The recipient is liable for the tax and must submit the service-import declaration and pay within 21 days after the tax period in which the service was imported.

Mining exploration

A qualifying supply connected with reconnaissance or prospecting by a registered holder of the relevant mineral right is treated as a relief supply.

Classification

Standard-rated, zero-rated, exempt and relieved are different outcomes.

Treatment	Customer charge	Input-tax position
Standard-rated	15% VAT + 2.5% NHIL + 2.5% GETFund	Input tax is deductible when the statutory conditions are satisfied
Zero-rated	0%	Input tax remains deductible when the statutory conditions are satisfied
Exempt	No VAT or associated levies	No deduction for related input tax unless the legislation provides otherwise
Relieved	Relief for qualifying persons and transactions	Apply the prescribed relief mechanism and evidence requirements
Outside scope	No Ghana VAT because the charging provisions do not apply	Trace the cost to the taxable, exempt or non-business activity it supports

The exact statutory descriptions, exclusions, conditions and supporting schedules must be applied to the particular transaction.

Classification controls the result: do not treat an exempt supply as zero-rated or assume that a familiar product name determines the legal treatment.

Frequently asked questions

Clear answers to common Ghana VAT questions

Select a question to expand the answer.

What is the VAT rate in Ghana?

The current standard-rate stack is a 15% VAT component, 2.5% NHIL and 2.5% GETFund Levy. Each charge is calculated on the same taxable value, producing an effective standard VAT rate of 20%.

How do I calculate VAT on GHS 1,000?

VAT is GHS 150, NHIL is GHS 25 and GETFund Levy is GHS 25. The tax-inclusive total is GHS 1,200.

How do I remove VAT from a tax-inclusive price?

Where the price includes the full standard 20% stack, divide the inclusive amount by 1.20 to find the taxable value. The combined tax is one-sixth of the inclusive amount.

What is the VAT registration threshold?

The registration threshold for taxable supplies of goods is GHS 750,000. Taxable services have no turnover threshold and registration is required within 30 days after beginning the taxable activity, unless the Commissioner-General directs otherwise. Mixed activities, voluntary registration and specified persons have separate rules.

When is the VAT return due?

Under the general rule, the monthly VAT and levies return and any tax payable are due by the last working day of the following month. A covered non-resident digital supplier files and pays by the last calendar day of the following month, including where that day is a weekend or public holiday. Returns are submitted through GRA's online tax system.

Are the former 3% and 5% VAT Flat Rate Schemes still in force?

No. The former 3% flat-rate scheme for supplies of goods and the former 5% flat-rate scheme for specified supplies of immovable property were removed from 1 January 2026. The separate Retail VAT Scheme is available only to a taxable retailer that first obtains the Commissioner-General's written approval.

Is the COVID-19 Health Recovery Levy still in force?

No. The former 1% COVID-19 Health Recovery Levy was abolished by the COVID-19 Health Recovery Levy (Repeal) Act, 2025 and has not applied since 1 January 2026.

Technical legal references

Primary authorities and section map

The main guide is written for practical use. The technical section references are collected here for readers who need to test the legal basis.

Value Added Tax Act, 2025 (Act 1151)Section 3: 15% VAT component; sections 6–17: registration; sections 21–47: scope, classification, time, place and value; sections 43 and 48–61: invoices, input tax, refunds, VAT withholding, returns and payment
National Health Insurance Act, 2012 (Act 852), as amendedSection 47(2): statutory basis for the 2.5% National Health Insurance Levy
Ghana Education Trust Fund Act, 2000 (Act 581), as amendedSection 3A(2): statutory basis for the 2.5% GETFund Levy
Revenue Administration Act, 2016 (Act 915), as amendedReturns, records, assessments, objections, penalties, interest and administration
Value Added Tax Regulations, 2016 (L.I. 2243)Applied only to the extent preserved and consistent with Act 1151
First, Second and Third Schedules to Act 1151Statutory descriptions and conditions for exempt, zero-rated and relief supplies, including the qualifying mining-exploration relief

Authority hierarchy: legislation controls. GRA's online systems and administrative guidance explain electronic filing, payment and tax-credit records, but they do not replace the Act or valid subsidiary legislation.

Institutional publisher

TaxLawGH is MSL Business School's Ghana tax education platform.

This guide is part of MSL Business School's public tax and fiscal policy education work. MSL publishes TaxLawGH to make Ghana's tax law accurate, understandable and useful to taxpayers, practitioners, businesses, students and policy professionals.

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