Acting Commissioner-General of the Ghana Revenue Authority, Anthony Sarpong
The Ghana Revenue Authority (GRA) has confirmed that it will begin implementing the Value Added Tax (VAT) reforms from January 1, 2026.
This follows the passage and subsequent presidential assent to the VAT Bill, 2025.
The development marks a significant overhaul aimed at simplifying the country’s tax system, consolidating tax laws, abolishing the COVID-19 Levy and improving compliance through digitisation in revenue administration.
The law also seeks to promote greater fairness and economic growth as the country intensifies efforts to enhance domestic tax mobilisation.
The reform forms part of recommendations from the International Monetary Fund (IMF) to reduce bureaucratic bottlenecks in tax collection.
Key changes include the unification of the flat-rate system, reduction in effective tax rates, allowance for the deduction of GETFund and NHIL as input tax, and improvements in revenue efficiency.
The reforms will also include the deployment of digital platforms such as the E-VAT system to ensure accurate tax collection.
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Speaking to journalists on the new VAT regime, the Commissioner for the Domestic Tax Revenue Division, Dr Martin Kolbil Yamborigya, explained that customers will now be required to pay 20 percent instead of 21.9 percent on goods and services.
“There will be a lot of benefits for the taxpayer because we have now re-coupled the National Health Insurance Levy and the Ghana Education Trust Fund (GETFund). This will bring down the amount to be paid.
“It means some savings will be made by businesses, and the levies have also become input taxes to be claimed at the end of the day,” he said.
The bill was passed in November this year after it was presented to Parliament during the 2026 Budget Statement and Economic Policy presentation.
The presidential assent further empowers the Ghana Revenue Authority to proceed with the implementation of the reforms contained in the law.
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