Ghana VAT Split Payments
- Nov 25, 2017 | Richard Asquith
Ghana is the latest country to propose Split Payments on VAT transactions in an attempt to limit fraud.
Split payments involve the payment by customers of the VAT element of the consideration directly to the government – instead of to the vendor. It has already been adopted in Italy and Austria. The European Union is reviewing a similar mechanism for B2C transactions on marketplace transactions in an effort to combat billions in lost VAT fraud.
The Ghanaian 2018 Budget proposes withholding 7% VAT on payments to government agencies and other nominated buyers.