Ghana VAT in 2026: VAT, NHIL and GETFund Explained

In short

Since 1 January 2026, the VAT Act, 2025 (Act 1151) applies VAT at 15%, NHIL at 2.5% and GETFund at 2.5% on the same base: 20% in total, down from an effective 21.9%.
The 1% COVID-19 levy and the VAT flat rate scheme are abolished, and NHIL and GETFund can now be claimed as input tax.
Suppliers of services must register for VAT regardless of turnover; the goods threshold rises to GHS 750,000 a year.
VAT invoices go through the GRA's certified invoicing system (E-VAT) or a fiscal electronic device; withholding VAT and withholding tax still apply.

What changed on 1 January 2026

The Value Added Tax Act, 2025 (Act 1151) took effect on 1 January 2026. The Ghana Revenue Authority (GRA) summarises the main changes as follows:

VAT stays at 15%, and the National Health Insurance Levy (NHIL) and Ghana Education Trust Fund (GETFund) Levy stay at 2.5% each, all computed on the same base. The total is 20%.
The COVID-19 Health Recovery Levy has been abolished.
NHIL and GETFund are recoupled with VAT, so registered businesses can deduct them as input tax.
The VAT Flat Rate Scheme, previously 3% for retailers and 5% for real estate, has been abolished; affected businesses now charge the standard rate.
The registration threshold for suppliers of goods rises from GHS 200,000 to GHS 750,000.

Advisers put the effective rate before the reform at 21.9%. That figure came from charging VAT on top of the levies, which is no longer done.

Worked example: GHS 10,000 of services

A VAT-registered consultancy invoices a Ghanaian client GHS 10,000 before tax.

Line	Rate	2026 (Act 1151)	Before 2026 (for comparison)
Fee		GHS 10,000	GHS 10,000
NHIL	2.5%	GHS 250	GHS 250
GETFund Levy	2.5%	GHS 250	GHS 250
COVID-19 levy	1%	Abolished	GHS 100
VAT	15%	GHS 1,500 (on GHS 10,000)	GHS 1,590 (on GHS 10,600)
Invoice total		GHS 12,000	GHS 12,190

The invoice must show VAT, NHIL and GETFund on separate lines. A VAT-registered client can now normally claim the full GHS 2,000 as input tax, where before the levies were a cost.

If your client withholds tax

Two separate withholding regimes can reduce the cash you receive.

Withholding VAT. Clients appointed by the GRA as VAT withholding agents withhold 7% of the taxable value on standard-rated supplies, here GHS 700. They issue a Withholding VAT Credit Certificate, which you use as a credit in your VAT return.
Withholding income tax. A resident business paying for services above GHS 2,000 withholds 7.5%. Applied to the GHS 10,000 fee, that is GHS 750, credited against your income tax.

In this example, a client who is a VAT withholding agent would pay GHS 10,550 (GHS 12,000 less GHS 700 and GHS 750) and give you two certificates. The example assumes income tax withholding applies to the fee before VAT; confirm the base with your adviser or the GRA. The GRA's withholding VAT guidance predates Act 1151, so check whether it has been updated. Payments to non-residents for services generally attract 20% withholding tax as a final tax.

Who must register for VAT

Suppliers of services: must register whatever their turnover, unless the Commissioner-General permits otherwise.
Suppliers of goods: must register once taxable supplies exceed GHS 750,000 in any 12-month period. Registration is also triggered earlier if supplies exceed GHS 62,500 in one month, GHS 187,500 in three months or GHS 375,000 in six months.
Non-resident suppliers of digital services must also register.

Penalties are heavier. Failure to register now attracts a minimum of three times the tax that should have been paid. Unregistered importers pay upfront VAT of 20% of the customs value, up from 12.5%.

E-VAT and certified invoicing

E-VAT is the GRA's electronic invoicing system for VAT-registered businesses. Each E-VAT receipt carries the Commissioner-General's signature, a QR code, an exact timestamp, a serial number and a machine registration code. The GRA offers a complete invoicing system free of charge, or a version that integrates with your existing software. You request it by writing to your Taxpayer Service Centre.

Under Act 1151, VAT returns are increasingly based on transaction data captured through these systems, so invoices issued outside them are a compliance risk.

Filing and payment

VAT returns and payment: by the last working day of the month following the month concerned.
Withholding VAT returns: by the 15th of the following month.
Income tax withholding: within 15 days after the end of the month.

Practical checklist

Update invoice templates to show VAT, NHIL and GETFund separately, and issue them through E-VAT.
Quote prices exclusive of VAT in contracts and state the rate that applies.
Reconcile withholding certificates monthly so that credits are not lost.
Former flat rate businesses can claim input tax on declared inventory, but only within six months from the date the deduction accrued.
Exports of goods and services are zero-rated; check that your export services meet the conditions.

How Gotham Consult can help

Gotham Consult registers new and foreign-owned businesses for TIN and VAT, sets up compliant E-VAT invoicing, and builds a monthly filing calendar for VAT, withholding and SSNIT. We work with licensed tax practitioners where a formal tax opinion is needed.

Questions

Is the effective VAT rate in Ghana 20% or 21.9%?

Since 1 January 2026 it is 20%: VAT at 15% plus NHIL and GETFund at 2.5% each, all on the same base. The 21.9% figure applied before the reform.

My consultancy has low turnover. Must I register for VAT?

Generally yes. Under Act 1151, suppliers of services must register regardless of turnover unless the Commissioner-General permits otherwise.

Can I claim NHIL and GETFund as input tax?

Yes. Since the levies were recoupled with VAT on 1 January 2026, VAT-registered businesses can deduct them as input tax, subject to the normal rules.

What is withholding VAT?

Clients appointed as VAT withholding agents withhold 7% of the taxable value of standard-rated supplies and give you a credit certificate. You offset it in your VAT return.

Do I charge VAT on services to overseas clients?

Exports of goods and services are zero-rated, so no VAT is charged if the supply qualifies as an export. Confirm the conditions for your service with the GRA or your adviser.

Sources

Last reviewed: 29 September 2026. This is general information, not legal or tax advice.