GRA dismisses claims of additional 20% VAT on digital services

The Ghana Revenue Authority (GRA) has dismissed claims that the introduction of a new digital Value Added Tax (VAT) collection system will impose an additional 20% tax on subscriptions and payments for online services.

In a press release issued on Wednesday, October 14, 2026, the Authority clarified that the new system does not introduce a new tax or increase existing tax rates but is intended to improve the collection of taxes already required by law.

It explained that the applicable effective tax rate remains 20%, comprising 15% VAT, 2.5% National Health Insurance Levy (NHIL) and 2.5% Ghana Education Trust Fund (GETFund) Levy.

The GRA noted that the taxes already apply to electronically supplied services provided by foreign companies to consumers in Ghana.

It added that about 92 foreign digital service providers are currently registered with the Authority and remit the applicable taxes, while approximately 100 others have been identified for inclusion in the tax system.

According to the GRA, customers who already pay the applicable taxes through their subscriptions should not be charged again when the new collection system takes effect.

However, it cautioned that consumers using services from providers who have not been charging and remitting the taxes could see the applicable charges reflected in their payments as those companies are brought into compliance.

The new system will allow the tax component of qualifying transactions to be identified and collected at the point of payment through participating banks, financial institutions and payment service providers.

The Authority said this would improve transparency and accountability, as the existing system relies largely on foreign digital service providers to declare their transactions and pay the taxes due.

The system will cover digital services such as streaming subscriptions, cloud computing, online gaming and digital advertising paid for through Ghana-issued bank cards, mobile money and other digital payment platforms.

The GRA clarified that the system applies to digital services and not imported physical goods purchased through international e-commerce platforms, which remain subject to the applicable Customs procedures.

It further assured consumers that it would continue to engage banks, payment service providers and digital companies to prevent duplicate tax collection and ensure that customers receive clear information about charges.

Members of the public who notice charges that appear inconsistent with the clarification have been encouraged to contact the Authority through its official channels for assistance and redress.

The GRA said the objective of the new system was to improve compliance, ensure fairness between local and foreign service providers, and ensure that taxes already required by law are properly collected and accounted for.

By: Jacob Aggrey