Ghana VAT on foreign digital services – update

VAT (Amendement) Act 2022 updates regulations on non-resident e-commerce rules

• Confirms VAT on e-commerce
• No VAT registration threshold for non-residents

VAT on foreign e-services providers since 2014

The West African country of Ghana imposed its Value Added Tax on non-resident providers of digital or electronic services to consumer from 1 January 2014. There is a VAT registration threshold of GHS 200,000 per annum (approx €28,000).

The current VAT rate in Ghana is 12.5%.  VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

What digital services are subject to Ghanaian VAT?

Income from the following digital services transmitted by wire, radio, optical or other electromagnetic systems is liable to Ghanaian VAT:

• Electronic commerce
• Data transmission
• Website hosting
• Streaming or download media (video, music etc)
• E-learning
• Images and text
• Distance maintenance of programmes and equipment

VAT registration and returns

(Update: no registration threshold following 2022 VAT Amendment Act) If a non-resident passed the VAT registration threshold of GHS 200,000 per annum then they should register with the Commissioner-General of the URA. Or GHS 50,000 in three months and with reasonable grounds to exceed turnover of GHS 150,000 in the next nine months. A VAT agent is likely to be required.

Once VAT registered, VAT returns are required on a monthly basis. These should be filed by the 21^st of the following month along with any VAT due.

Africa & Middle East VAT on digital services