GRA Announces Major VAT Reforms, Effective January 2026

The Ghana Revenue Authority (GRA) has announced significant reforms to the country’s Value Added Tax (VAT) system, aimed at simplifying administration, promoting equity, and encouraging voluntary compliance.

In a statement, GRA said, “The threshold for VAT registration for businesses who deal in goods has been increased from GHC200,000 to GHC750,000.”

The Authority added that the COVID-19 Health Recovery Levy has been abolished.

The statement further explained the re-coupling of the National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund (GETFund) levies, noting that “the re-coupling of NHIL and GETFund levies, to allow for input tax credit claims,” and that “GETFund and NHIL levies will be treated as input tax deductions.”

In addition, GRA confirmed that “the VAT rate has been reduced to 20% to ease the tax burden on households and businesses,” and that “the VAT Flat Rate Scheme (VFRS) has been abolished with the introduction of a unified and more transparent VAT structure.”

The Authority stated that the reforms will take effect on 1st January 2026 and urged all stakeholders, including VAT-registered taxpayers, employers, accountants, auditors, importers, exporters, clearing agents, and tax consultants, to familiarize themselves with the new measures.

For further inquiries, GRA advised the public to visit the nearest Taxpayer Service Centre, call the toll-free line of their communication channels