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Ghana raises VAT from 12.5% to 15% 2014

  • VAT
  • 23 November 2013 | Richard Asquith

Ghana raises VAT from 12.5% to 15% 2014

The African state of Ghana has voted to increase the Value Added Tax rate from 12.5% to 15% from the 1 January 2014.

VAT rise needed for investment

The VAT rise will raise almost €300 million of tax revenues to help fund much-needed infrastructure investments.  Ghana is too heavily reliant on deposits of gold, and needs to extend its revenue base.  It has struggled to raise competitively priced debt on the world financial markets, so has had to raise the consumption tax rate instead.  There are also a raft of spending cuts in the latest budget, and cuts to subsidies on power and gas.

The average VAT rate in Africa is 16%.  The compares to the EU average VAT rate of over 21%.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.