Overview
Section 15 of Ghana’s Value Added Tax Act, 2025 (Act 1151) (“VAT Act”) requires non-resident persons who supply telecommunication services or electronic commerce (e-commerce) services for use or enjoyment in Ghana, other than through a VAT-registered agent, to register for VAT if they make taxable supplies.
Key provisions applicable to VAT on ESS
| Particulars | Description |
| Scope | Both B2B and B2C |
| Liability to remit VAT | Non-resident supplier |
| VAT rate | VAT rate of 15%, National Health Insurance Levy (“NHIL”) of 2.5%, Ghana Education Trust Fund Levy (“GETFL”) of 2.5%. Effective rate of 20% |
| Taxable value | Base value (cost) |
| Effective date | April 2022 (first introduced by an earlier law now repealed) |
| VAT registration threshold | There is no threshold for registration |
| Tax invoice | Required to be issued. It may be the non-resident supplier’s own system generated tax invoice following approval from the Commissioner-General. The Revenue Authority has currently begun onboarding non-resident suppliers onto the E-VAT system. |
Services in scope
- Telecommunications Services, including services that relate to the transmission, emission or reception of information of any nature by wire, radio, optical or other electromagnetic systems.
- Electronic Commerce - business transactions that takes place through the electronic transmission of data over a communication network such as the internet.
- Digital Services, including social networking, online gaming and digital marketplace operation.
Registration and compliance
Non-resident persons who supply telecommunication services or electronic commerce services for use or enjoyment in Ghana, other than through a VAT-registered agent, are required to register for VAT. Registration is by application to the Tax Authority.
Monthly VAT returns must be filed and payment made on or before the last day of the month following the month in which the return relates to.
Invoicing
The non-resident supplier is required to issue VAT invoices. The invoice may be its own system-generated tax invoice if the non-resident has the Tax Authority’s approval to do so. Otherwise, the non-resident needs to be onboarded to the E-VAT system in order to issue VAT invoices.
VAT on costs
Non-resident suppliers are unable to recover input VAT incurred. However, non-resident suppliers may recover 7% withholding VAT suffered.
Other considerations
No other considerations or provisions apply to non-resident suppliers of ESS to consumers in Ghana.
VAT on cryptocurrency/digital assets
Currently, Ghana does not have specific VAT rules or regulations relating to cryptocurrency-related activities or digital assets.
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