Regulatory updates - Ghana

Ghana has enacted the Value Added Tax Act, 2025 (Act 1151), which repeals and consolidates the former VAT Act (Act 870) and introduces targeted reforms to strengthen VAT administration. A key element of the new framework is the mandatory integration of Fiscal Electronic Devices (FEDs) into VAT compliance and return filing, reinforcing Ghana’s shift toward transaction‑based digital VAT controls.

Integration of FEDs into VAT reporting

Taxpayers required to use Fiscal Electronic Devices must now fully integrate these devices into their VAT compliance processes. VAT returns are expected to be based on transaction data captured through FEDs, directly linking invoice issuance at the point of sale to VAT reporting.

The FED refers to the device or system used to issue VAT‑compliant invoices or receipts, while the Certified Invoicing System (CIS) is the Ghana Revenue Authority’s approved platform through which invoice data is validated and transmitted to the tax authority. This effectively embeds FED usage into the VAT return filing process.

VAT registration thresholds

Suppliers of taxable goods are required to register for VAT once taxable supplies exceed 750,000 GHS (approx. 60,000 EUR) over any twelve‑month period. The accompanying administrative guidelines allow for earlier registration where there are reasonable grounds to expect that the threshold will be exceeded within a shorter period, including specific monthly, quarterly, and six‑month supply levels.

VAT rate

The effective VAT rate has been reduced from 21.9% to 20%, composed of VAT at 15%, NHIL (National Health Insurance Levy) at 2.5%, and GETFL (Ghana Education Trust Fund Levy) at 2.5%. 

To reform its VAT regime and improve efficiency in the tax administration, the parliament of Ghana has approved the VAT Bill, 2025. The Bill includes new legislative measures impacting tax calculation in invoices.

In 2026, the COVID-19 Health Recovery Levy, which imposed a 1% charge on goods, services, and imports without allowing input tax deductions, will be abolished. Additionally, the effective VAT rate will decrease from 21.9% to 20%. Businesses will be able to deduct the Ghana Education Trust Fund and National Health Insurance Levy as input tax, which was previously not permitted, thereby reducing business costs.

As part of the initiative to enhance compliance and increase revenue collection, the Ghana Revenue Authority (GRA) will enforce digital VAT collection on cross-border e-commerce. Fiscal devices will be rolled out to track taxable transactions, and a consumer reward system will be introduced to encourage the issuance of receipts and help monitor compliance. The fiscal devices will work alongside the country’s e-invoice mandate that’s currently being rolled out.

The Bill awaits the president’s signature before becoming law. Implementation dates and regulatory guidelines will be announced in the future, and timely notice to businesses will be given by the GRA before enforcement begins.

While the Taxation (Use of Fiscal Electronic Device) Act has been in force since 2018, requiring specified taxpayers to use approved EFDs at each point of sale, its active implementation has been limited.  

The tax authority has signalled it’s ready to fully roll out the legislation as part of Ghana’s broader VAT reform program. This initiative aims to enhance compliance and increase revenue collection, working alongside GRA's phased e-invoice mandate that's currently being rolled out.  

Taxpayers who will be included in the expanded EFD mandate will face penalties for non-compliance when the full implementation takes effect in early 2026.