The Ghana Revenue Authority (GRA) has confirmed that the value-added tax (VAT) reforms will take effect from 1 January 2026, following the passage and presidential assent of the VAT Bill 2025.
The reforms represent a major overhaul of Ghana’s tax system, aimed at simplifying tax laws, abolishing the COVID-19 Levy, and improving compliance through digitisation. The changes are also intended to promote fairness, boost economic growth, and enhance domestic revenue mobilisation.
The VAT overhaul aligns with recommendations from the International Monetary Fund to streamline tax collection and reduce bureaucratic bottlenecks. Key provisions include unifying the flat-rate system, reducing effective VAT rates, allowing the deduction of GETFund and NHIL as input tax, and deploying digital collection channels such as E-VAT for more accurate reporting and payment.
Speaking to journalists, Dr. Martin Kolbil Yamborigya, Commissioner for the Domestic Tax Revenue Division, explained that the new law reduces VAT from 21.9% to 20% on goods and services. He highlighted additional benefits, noting that the integration of the National Health Insurance Levy and Ghana Education Trust Fund (GETFund) as input taxes will lower the overall tax burden for businesses and allow for savings through end-of-period claims.
The VAT Bill 2025 was presented to Parliament during the 2026 Budget statement and economic policy presentation, before being formally passed in November, marking a significant milestone in Ghana’s efforts to modernise its tax framework.
