Ghana – VAT rise update

Sun 19th Jan 2014

Following the announced Ghana VAT rise to 15% in 2014 , there is confirmation of other changes to the VAT regime.

The National Health Insurance Levy (NHIL), which is charged in a addition to VAT.  has not changed, and remains at 2.5%.  The effective VAT rate in Ghana is now therefore 17.5%.

In addition to the VAT rises, the net of goods subject to VAT was also increased to include the following:

  • The sale of immovable property by a developer
  • Fees on financial services, credit, currency including insurance premiums (life insurance is exempt)
  • Domestic transport for passenger air travel, haulage and vehicle rental
  • Auction houses and gyms
  • Non-retail pharmaceuticals supplies

Any businesses providing the above services will now have to VAT register with the tax authorities, and submit monthly filings.

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