VAT On Non-life Insurance Premiums Takes Effect in July

The Ghana Revenue Authority (GRA) has announced that the 15% VAT non-life insurance premiums will take effect next month.

In a statement, the Authority said, “Starting July 1, 2025, a 15% VAT will be applied to non-life insurance premiums in Ghana.”

The Value Added Tax (Amendment) Act 2023, (Act 1107), provides for the imposition of VAT on non-life insurance premiums, excluding motor insurance policies.

VAT on Non-Life Insurance refers to the 15% Value Added Tax applied to premiums paid on general insurance policies such as fire, marine, travel, burglary, property, personal accident, liability, and workmen’s compensation insurance.

These policies offer protection against risks other than death or permanent disability and are classified as taxable supplies under the VAT Act, 2013 (Act 870), as amended.

Reacting to the development, the Member of Parliament for Old Tafo Constituency, Vincent Assafuah, chastised the government for doing contrary to its promise.

He called the tax a “betrayal” of public trust.
“From zero per cent (0%) to a painful 15% VAT, Ghanaians are now being taxed just for trying to be responsible…This is not just a policy. It is a tax on survival. A tax on safety. And yes, a tax on the struggling Ghanaian.”

According to him, these premiums have always been VAT-exempt (0%), because governments knew taxing protection was reckless.

“Why make it harder for the driver to insure his trotro? Why punish a young entrepreneur for securing her shop? Why slap a fresh tax on the few who actually use insurance in this country?”

Source: https://opemsuo.com/author/hajara-fuseini/