Regulatory updates - Ghana

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.

Ghana Revenue Authority (GRA) has announced plans to fully implement and enforce the use of fiscal electronic devices (EFDs) in 2026 — a move designed to strengthen tax compliance across the country. 

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. 

The Ghana Revenue Authority (GRA) is onboarding an additional 2000 VAT-registered taxpayers to the Electronic VAT Invoicing System as a part of the second phase. Onboarded taxpayers will have to issue electronic VAT invoices. The new E-VAT system will help the GRA monitor real-time VAT transactions.

Similarly to the previous onboarding, taxpayers in the scope of the second phase have been invited to seminars with the GRA to help with the onboarding steps.