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Ghana VAT rate restructured to 12.5% Aug 2018

  • VAT
  • 06 August 2018 | Richard Asquith

Ghana VAT rate restructured to 12.5% Aug 2018

Ghana has split out the 2.5% National Health Levy from the combined current VAT rate. This means the new VAT rate will be 12.5% instead of the current consolidated 15%. VAT is charged on all taxable suppliers, as well as imports.

The 2.5% National Health Levy will now be combined with the Education Trust Fund levy of 2.5%. Making a combined charge of 5%. This new charge will be termed the ‘Health and Education Levy’

The change was included in the country’s 2018 mid-year budget, passed by Parliament on 28 July 2018, and is applied from 1 August 2018. The rate was last increased from 12.5% to the current 15% in  January 2014. Last year, the government introduced a 3% flat rate for small companies. Ghana had originally considered raising the standard rate from 15% to 17% this year, but abandoned it last month.

 

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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.