The ultimate Worth Added Tax (VAT) price that might be paid by companies is anticipated to be lowered from 22% to twenty % from 2026.
This might be captured within the 2026 Finances, which the Finance Minister Dr. Ato Forson has disclosed to JOYBUSINESS that it could possibly be offered to parliament in October 2025.
Companies presently pay about 22 p.c because the efficient VAT, nonetheless as a result of present on-going reforms and strikes to simplify this tax kind and rules, that remaining price might be lowered to twenty p.c.
Commissioner Basic of the Ghana Income Authority, Anthony Sarpong who disclosed this on PM EXPRESS Enterprise Version with George Wiafe on 21st August 2025, famous that authorities is dedicated to decreasing the tax burden on companies.
The Commissioner Basic famous that also they are working to de-couple the levies that will increase the ultimate tax paid by companies registered for VAT.
“The brand new VAT invoice needs to be prepared by September this 12 months and that ought to assist the Finance Minister lay it earlier than the tip of 2025,” the commissioner revealed.
Ghana’s VAT construction
In accordance with the Ghana Income Authority, the Worth Added Tax is utilized on the worth added to items and providers at every stage in manufacturing and the distribution chain. It varieties a part of the ultimate worth that the buyer pays for the products and providers.
Following the passage of the Worth Added Tax (Modification) by parliament the VAT price was elevated from 12.5% to fifteen p.c as the usual VAT price. Nonetheless, the addition of Nationwide Well being Levy (NHIL), Ghana Schooling Belief Fund Levy (GETFund Levy) and the COVID -19 Well being Restoration Levy (COVID-19 HL) are separate levies which are calculated on the taxable worth.
These expenses have implications on the calculation of the Tax for VAT registered individuals.
Breakdown
- VAT customary Price – 15%
- Nationwide Well being Insurance coverage Levy (NHIL) – 2.5%
- Ghana Schooling Belief Fund (GETFUND) – 2.5%
- COVID-19 Well being Restoration Levy (COVID-19 HRL) – 1%
Ongoing VAT Reforms
The Commissioner Basic of the Ghana Income Authority additionally maintained that, GRA has made important progress on reforms that’s looking for to simplify the present VAT legal guidelines in addition to the entire tax construction within the nation.
“We’re presently on the final section of engagement, and the whole lot needs to be finalised by September this 12 months,” the Commissioner Basic mentioned.
The Commissioner Basic added “we have now additionally come very far in eradicating the COVID-19 Levy as nicely”
Anthony Sarpong famous that, the finance minister is anticipated to current the revised VAT rules invoice and the removing of the COVID-19 Levy to parliament this 12 months, nonetheless its implementation will take off from 2026.
The Commissioner Basic of the Ghana Income Authority nonetheless rejected arguments, the anticipated 20 p.c efficient VAT price is simply too excessive, including that “we’re working very laborious to enhance compliance and that might see authorities scale back the speed additional going ahead.
He additionally introduced that they’ve made important progress in serving to companies to know the present tax legal guidelines, “a transfer that might go a great distance to enhance compliance”
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