VAT returns must now be based on real-time transaction data captured through FEDs, creating a direct link between point-of-sale invoicing and tax reporting.
Ghana has introduced the Value Added Tax Act, 2025 (Act 1151), replacing the previous VAT Act (Act 870) with a modernised framework that mandates the use of Fiscal Electronic Devices (FEDs) in VAT administration.
Under the new legislation, businesses required to use FEDs must integrate these devices into their VAT filing process. VAT returns must now be based on real-time transaction data captured through FEDs, creating a direct link between point-of-sale invoicing and tax reporting.
FEDs work alongside the Certified Invoicing System (CIS), the Ghana Revenue Authority’s approved platform that validates and transmits invoice data to tax authorities. This integration creates a transaction-level digital control system for VAT compliance.
Businesses must register for VAT when their taxable supplies exceed GHS 750,000 (approximately EUR 60,000) within any twelve months. Administrative guidelines permit early registration if suppliers reasonably expect to meet this threshold sooner.
The effective VAT rate has been reduced from 21.9% to 20%, comprising VAT at 15%, the National Health Insurance Levy at 2.5%, and the Ghana Education Trust Fund Levy at 2.5%.
Earlier, Ghana’s Ministry of Finance presented the 2026 Budget Speech to parliament on 13 November 2025, introducing various tax measures, including VAT reforms.
