The Ghana Revenue Agency issued a Notice on the last day of 2025, which should be carefully acknowledged, and later on applied by all VAT-registered taxable persons. Starting from January 1, 2026, the following measures shall be implemented:
• The COVID-19 Health Recovery Levy has been abolished
• 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%
VAT calculation logic
Calculator 2025
- Value Added Tax (VAT) – Standard Rate: 15%
- National Health Insurance Levy (NHIL): 2.5%
- Ghana Education Trust Fund (GETFund): 2.5%
- COVID-19 Health Recovery Levy (COVID-19 HRL): 1%
Total: 21%
Calculator 2026
Value Added Tax (VAT) – Standard Rate: 15%
National Health Insurance Levy (NHIL): 2.5%
Ghana Education Trust Fund (GETFund): 2.5%
Total: 20%
Reminder
It shouldn’t be forgotten that the calculation logic for the effective Ghana VAT rate (from 2026, 20%) is performed gradually in separate steps. First, levies should be calculated on the taxable amount, and only later is VAT imposed (calculated) on the aggregated amount.
Non-resident digital service providers should be aware of this critical change and adjust their tax calculation engine, invoicing, and reporting systems accordingly.