Ghana

Ghana to raise VAT to 17%

February 17th, 2018

Ghana has proposed a Value Added Tax rate increase of 2% to 17%. The rate was last increased from 12.5% to the current 15% in  January 2014. Last year, the government introduced a 3% flat rate for small companies.


Ghana

Ghana VAT Split Payments

November 26th, 2017

Ghana is the latest country to propose Split Payments on VAT transactions in an attempt to limit fraud. Split payments involve the payment by customers of the VAT element of the consideration directly to the government – instead of to the vendor.  It has already been adopted in Italy and Austria. The European Union is …


Ghana

Ghana VAT e-cash register

October 27th, 2017

Ghana has introduced mandatory ‘Fiscal Electronic Devices’ (FED) for the recording of secure VAT transactions.  These are similar to e-cash registers, which live report to tax authorities cash payments in the retail, restaurant and other services sectors.  The aim is to reduce the incidence of VAT avoidance by non or partial recording of cash payments. …


Ghana

Ghana VAT changes

March 3rd, 2017

The proposed 2017 budget for Ghana has introduced a number of changes to the indirect tax regime.  These include: Exemption from VAT for financial services New VAT rate of 3% for certain businesses as opposed to the standard rate of 15%, which was introduced in 2014 Exemption from VAT for real estate transactions Exemption from …


Ghana

Ghana VAT on foreign B2C digital service providers

November 24th, 2015

Below is a review of the rules applying VAT on digital services provided to Ghanaian consumers by non-resident providers: VAT applies to the supply of telecom, broadcast, data and electronic services to consumers E-services includes: software; data and images; streaming or downloads of music, video and games; websites; automated distance learning; subscriptions to journals; and …


Ghana

Ghana raises VAT registration threshold

November 22nd, 2015

Ghana is to increase its VAT registration threshold. The new level at which businesses (companies and unincorporated entrepreneurs) must compulsory VAT register is Ghananian Cedi GHS 200,000, up from the previous GHS 120,000. This threshold applies of any 12 month period. Companies that bill more than 25,000 in a three month period and expect to …


Ghana

Ghana VAT changes

January 15th, 2015

The Ghanaian government has introduced in 2015 a number of VAT changes to help fund its restructuring program. The changes include: Levying 5% VAT flat rate scheme on immovable property Withdrawal of the VAT refund account Withdrawal of import VAT and duties on education supplies, smart phones and some farm implements Imposition of VAT on …


Ghana

Ghana VAT on financial services delays

March 1st, 2014

Following the increase of the Ghana VAT rate to 15% from 1 January 2014, there has been uncertainty about the implementation of VAT on a range of financial services. Originally, the 2013 VAT Act plan had been to extend the VAT net to include banking and insurance.  However, this has now been delayed until 1 …


Ghana

Ghana – VAT rise update

January 19th, 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 …