Global VAT & Indirect Tax News

Ghana introduced a 12.5% VAT on non‑resident digital service providers to local consumers effective 1 April 2022. The law sets a GHS 200,000 annual turnover threshold for registration and requires monthly returns filed by the 21st of the following month. Non‑resident suppliers must appoint a resident representative or VAT agent to comply.

The article examines Ghana’s new Value Added Tax Act 2025 (Act 1151) and its implications for capital market services, arguing that the tax may deter investment rather than encourage it. It discusses how the law could affect investor confidence and offers recommendations for regulators and stakeholders to balance tax policy with market development.

Ghana's recent VAT reforms aim to correct structural weaknesses rather than provide immediate price cuts. Key changes include abolishing the COVID‑19 Health Recovery Levy, allowing NHIL and GETFund levies to be credited as input VAT, raising the goods‑based registration threshold, and phasing out flat‑rate schemes. The reforms also emphasize electronic invoicing to improve compliance and revenue collection.

The Ghana Revenue Authority has raised the VAT registration threshold from GH¢200,000 to GH¢750,000 per annum, effective 26 January 2026. Businesses below the new threshold will be deregistered and placed under the Modified Tax Scheme, which offers simplified compliance options. The move aims to reduce the compliance burden on micro and small businesses in the informal sector.