Ghana – VAT rise update
- Jan 18, 2014 | Richard Asquith
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.