The Ghana Revenue Authority (GRA) has dismissed reports suggesting that the introduction of a new digital Value Added Tax (VAT) collection system will impose an additional 20 per cent tax on subscriptions and payments for digital services.
In a press release issued on October 14, 2026, the Authority explained that the new system was designed to improve the collection and accounting of existing taxes on digital services provided by non-resident companies, rather than introduce a new tax or increase the current rate.
The GRA clarified that the effective tax rate remains 20 per cent, comprising 15 per cent VAT, a 2.5 per cent National Health Insurance Levy (NHIL) and a 2.5 per cent Ghana Education Trust Fund (GETFund) Levy.
It stressed that consumers already paying the applicable taxes should not be charged again for the same transaction following the implementation of the new system.
According to the Authority, approximately 92 non-resident digital service providers are currently registered and remitting VAT to the GRA. However, it has identified about 100 additional foreign digital service providers that are not yet charging and remitting the required taxes.
The Authority said these providers would gradually be brought into compliance, meaning customers using their services could begin seeing the applicable statutory taxes reflected in their payments where such charges were previously absent.
The GRA added that the new collection mechanism would improve transparency and accountability by enabling the tax component of qualifying transactions to be identified and collected at the point of payment through participating financial institutions and payment service providers.
The system will cover electronically supplied services, including streaming subscriptions, cloud computing, online gaming and digital advertising paid for through Ghana-issued payment instruments such as bank cards and mobile money.
However, the Authority emphasised that the system applies to digital services and not imported physical goods. It explained that physical goods purchased through international e-commerce platforms would continue to be subject to the applicable customs procedures.
The GRA also acknowledged concerns about possible duplicate taxation and said it would continue engaging banks, payment service providers and digital service companies to establish safeguards against double collection and ensure clear communication of applicable charges.
Members of the public who encounter charges that appear inconsistent with the clarification have been encouraged to contact the Authority through its official communication channels for assistance and redress.
The GRA reiterated that the initiative is intended to strengthen tax compliance, promote fairness between resident and non-resident service providers, and ensure that taxes already required by law are properly collected and accounted for.
It urged the public to distinguish between the introduction of a new tax and improvements in the collection of existing taxes, adding that the system forms part of its broader efforts to use technology to improve domestic revenue mobilisation and protect taxpayers’ interests.
