The GRA has announced VAT reforms under the Value Added Tax Act, 2025, effective 1 January 2026, including a higher registration threshold, repeal of the COVID-19 Health Recovery Levy, recoupling of NHIL and GETFund levies, and a streamlined VAT structure to simplify compliance and support national programs.  

RF Report

Ghana’s tax authority, the Ghana Revenue Authority (GRA), on 31 December 2025 issued a notice to all VAT-registered taxpayers outlining the VAT reforms enacted under the Value Added Tax Act, 2025, which will take effect from 1 January 2026.

Following the passage of the Value Added Tax Act, 2025 (Act 1151), which covers significant reforms in the administration of Value Added Tax (VAT), all VAT registered taxpayers and the general public are entreated to take note of the following:

  • The threshold for VAT registration for businesses that deal in goods has been increased from GHS 200,000 to GHS 750,000.
  • The COVID-19 Health Recovery Levy has been abolished. Ghana will abolish the 1% COVID-19 Health Recovery Levy on goods, services, and imports from January 2026, following the President’s signing of the repeal law on 10 December 2025.
  • The recoupling of NHIL and GETFund levies, to allow for input tax credit claims.
  • GETFund and NHIL levies will be treated as input tax deductions.
  • The VAT rate remains at 15% while the NHIL and GETFund levies stay at 2.5% each, bringing the total effective VAT rate to 20%. This approach is designed to ease the tax burden on households and businesses while still supporting essential national programmes.
  • The VAT Flat Rate Scheme (VFRS) has been abolished with the introduction of a unified and more transparent VAT structure.

The general public, particularly VAT Registered Taxpayers, Employers, Accountants, Auditors, Importers, Exporters, Clearing Agents and Tax Consultants, are to note that these reforms are designed to simplify the VAT system, promote equity, improve administrative efficiency, and encourage voluntary tax compliance.

Earlier, Ghana’s Parliament passed the Value Added Tax 2025 on 27 November 2025.