A number of goods and services are exempt from VAT under the VAT Act, 2013 (Act 870) law (S. 15 Section 35/ Schedule 1). This classification should, however, be distinguished from zero-rated supplies. (All goods and services exempt from VAT are also exempt from the NHIL and GETFund). A summary of the goods and services which are exempt from VAT/NHIL and GETFund include:
This classification includes all live animals such as cattle, sheep, goats, swine and poultry, but excludes horses, asses, mules, hinnies and similar exotic animals.
Articles designed exclusively for use by the disabled.
The supply of educational services at any level by an educational establishment approved by the Minister for Education. Laboratory equipment for educational purposes and library equipment.
Medical services, essential drugs as listed under Chapter 30 of the ‘HS Code’ produced or supplied in Ghana, specified active ingredients for essential drugs, and selected imported special drugs determined by the Minister for Health and approved by Parliament.
Includes transportation by bus and similar vehicles, train, boat and air.
Machinery, apparatus, appliances and parts thereof, designed for use in
Petrol, diesel, liquefied petroleum gas, kerosene and residual fuel oil.
The granting, assignment or surrender of an interest in land or buildings intended to be used for the purpose of dwelling; the right to occupy land or buildings excluding hotel accommodation, warehousing, storage and similar occupancy incidental to the provision of the related services. Civil engineering public works.
This exemption excludes professional services such as architectural or surveying (i.e. these are taxable services).