Ghana’s tax authorities have announced sweeping reforms to the country’s Value Added Tax regime following the passage of the Value Added Tax Act, 2025 (Act 1151), which takes effect on January 1, 2026.
Under the new law, the threshold for mandatory VAT registration for businesses dealing in goods has been significantly increased from GH¢200,000 to GH¢750,000, a move expected to ease compliance pressures on small enterprises. The COVID-19 Health Recovery Levy has also been abolished, ending a pandemic-era tax introduced to support public health financing.
The reforms further provide for the re-coupling of the National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund (GETFund) levies, allowing businesses to claim input tax credits. Both levies will now be treated as allowable input tax deductions, improving cash flow for VAT-registered entities.
In a major rate adjustment, the VAT rate has been reduced to 20 per cent to lessen the tax burden on households and businesses. Additionally, the VAT Flat Rate Scheme has been abolished, paving the way for a unified and more transparent VAT structure.
The Ghana Revenue Authority says the reforms are designed to promote equity, enhance administrative efficiency and encourage voluntary compliance. VAT-registered taxpayers, employers, accountants, auditors, importers and clearing agents have been urged to familiarise themselves with the changes.
Further information is available at Taxpayer Service Centres nationwide or through GRA’s toll-free and digital support channels.