articles Archives - GhTaxClub

Ghana’s new VAT law removes consumption-based zero-rating of services

Before 2026, there were four different VAT rates in Ghana. We had two flat rates, made up of 3% for some retailers and 5% for the real estate sector. There was also the standard rate of 15% and a rate of 0%. The new VAT law has abolished the flat rates. It has also modified, even if unintentionally, the way some services are considered for zero rating.

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Communications Service Tax on Imported Services

Communications Service Tax is a tax that is imposed on electronic communications services. The tax authority expects any user of the electronic communications to pay the tax whenever the electronic communications service is provided from outside Ghana. This practice is inconsistent with the law. This article discuses what the law says and why the tax authority needs to update its Administrative Guidelines and audit methodology.

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The new VAT regime for supply of services

The Value Added Tax Act, 2025 (Act 1151) came into force on 1 January 2026. It came with some reforms such as removing the GETFund and NHI levies from the base of the calculation of the VAT and allowing deduction of the input GETFund and NHI levies. The effect of all the reforms taking effect in 2026 is the reduction of the effective tax rate from 21.9% to 20%. One major reform which does not benefit taxpayers is the removal of threshold for services. This article discusses the unexpected change.

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Restoration of the cascading rulings

In recent years, petroleum subcontractors, particularly those under Tullow and ENI, have faced significant challenges due to the revocation of crucial tax rulings by the GRA. This article delves into the legal intricacies surrounding these rulings, their implications, and the subsequent judicial interpretations. With the Supreme Court’s recent decision suggesting that the GRA’s revocation was misguided, we explore how the special legislative framework for subcontractors continues to uphold these rulings. Discover the complexities of tax law and the ongoing debate that could reshape the landscape for petroleum subcontractors in Ghana.

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