Ghana VAT rate restructured to 12.5% Aug 2018
- Aug 5, 2018 | Richard Asquith
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.