Ghana’s new Value Added Tax (VAT) reforms have come into effect, aiming to boost economic growth, create jobs and transform the economy through tax relief.
The Ministry of Finance announced that the reforms will return GH₵3.7 billion to individuals and businesses in 2026 alone, with the standard VAT rate reduced to 20 percent.
The Ministry highlighted that the reforms include the abolition of the COVID-19 Levy, adjustments to Ghana Education Trust Fund (GETFund) and National Health Insurance Levies (NHIL), and changes to VAT registration thresholds.
Businesses dealing in goods must now register for VAT only when their turnover exceeds GH₵750,000, up from GH₵200,000.
The VAT Flat Rate Scheme has been abolished and replaced with a unified and more transparent VAT structure.
According to the Ministry, the changes are expected to return nearly GH₵6 billion to businesses and households in 2026, driving growth and job creation.
The government describes the changes as “tax relief in action – resetting for growth, jobs and economic transformation.”
