NOTICE TO ALL VAT REGISTERED TAXPAYERS
Following the passage of Value Added Tax Act, 2025 (Act 1151), which covers significant reforms in the administration of Value Added Tax (VAT), all VAT registered taxpayers and the general public are entreated to take note of the following:
• The threshold for VAT registration for businesses who deal in goods has been increased from GH₵200,000 to GH₵750,000.
• The COVID-19 Health Recovery Levy has been abolished.
• The recoupling of NHIL and GETFund levies, to allow for input tax credit claims.
• GETFund and NHIL levies will be treated as input tax deductions.
• The VAT rate remains at 15% while the NHIL and GETFund levies stay at 2.5% each, bringing the total effective VAT rate to 20%. This approach is designed to ease the tax burden on households and businesses while still supporting essential national programmes.
• The VAT Flat Rate Scheme (VFRS) has been abolished with the introduction of a unified and more transparent VAT structure.
• Effective Implementation of the VAT Act is January 1, 2026.
The general public, particularly VAT Registered Taxpayers, Employers, Accountants, Auditors, Importers, Exporters, Clearing Agents and Tax Consultants are to note that
these reforms are designed to simplify the VAT system, promote equity, improve administrative efficiency, and encourage voluntary tax compliance.
For further inquiries, kindly visit the nearest Taxpayer Service Centre, call GRA Toll – free on 0800 900 110, WhatsApp on 055 299 0000 or 020 063 1664, or email info@gra.gov.gh.
