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Ghana – VAT rise update

  • Jan 17, 2014 | Richard Asquith

Ghana – VAT rise update

Following the announced Ghana VAT rise to 15% in 2014 , there is confirmation of other changes to the VAT regime.

The National Health Insurance Levy (NHIL), which is charged in a addition to VAT.  has not changed, and remains at 2.5%.  The effective VAT rate in Ghana is now therefore 17.5%.

In addition to the VAT rises, the net of goods subject to VAT was also increased to include the following:

  • The sale of immovable property by a developer
  • Fees on financial services, credit, currency including insurance premiums (life insurance is exempt)
  • Domestic transport for passenger air travel, haulage and vehicle rental
  • Auction houses and gyms
  • Non-retail pharmaceuticals supplies

Any businesses providing the above services will now have to VAT register with the tax authorities, and submit monthly filings.

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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.