GRA Confirms VAT Reforms from Jan 1—Lower Rate, Digital Boost, COVID Levy Gone!
The Ghana Revenue Authority (GRA) has said that it will start making changes to the value added tax on January 1, 2026.
This comes after the VAT Bill 2025 was passed and signed by the President.
This change is a big step toward making the country’s tax system easier to understand, combining laws, getting rid of the COVID-19 Levy, and making it easier to follow the rules by digitizing revenue administration.
The law also wants to make things more fair and help the economy grow as the country works to improve tax collection at home.
The International Monetary Fund suggested this change as a way to cut down on red tape in tax collection.
Some important changes are making the flat-rate system work better, lowering effective rates, letting GETFund/NHIL be deducted as input tax, and making revenue collection more efficient.
This will also involve using digital channels like the E-VAT to make sure the money is collected correctly.
Dr. Martin Kolbil Yamborigya, the Commissioner for Domestic Tax Revenue Division, told reporters that customers will now have to pay 20% instead of 21.9% on their goods and services.
“Taxpayers will benefit a lot because we have now linked the National Health Insurance Levy and the Ghana Education Trust Fund (GETFUND) again. This will lower the amount that needs to be paid.” He said, “This will mean that businesses will save money, and it has also become an input tax that can be claimed at the end of the day.”
The bill was passed in November of this year after being introduced to parliament during the 2026 Budget statement and economic policy presentation.
The president’s approval gives the Ghana Revenue Authority more support to go ahead with the changes to the law.
