The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) released a joint communiqué today, detailing a collaborative plan to roll out the Value Added Tax Act, 2025 (Act 1151). The agreement emerged from high-level talks held Wednesday, January 7, 2026, at GRA headquarters in Accra’s Ministries area. These discussions tackled traders’ concerns over shifting from the abolished VAT Flat Rate Scheme to a standard VAT system.
Key Outcomes
To foster a smooth transition and economic stability, the parties agreed on these measures:
Fixed Q1 Tax Rate: Eligible taxpayers, including GUTA members, will apply a 20% effective VAT rate (covering National Health Insurance Levy and GETFund Levy) until March 31, 2026.
Joint Technical Team: Representatives from GRA and GUTA will form a team to address sector challenges, such as improving VAT record-keeping, easing input VAT claims, and simplifying calculations.
Nationwide Sensitisation: GRA commits to ramping up educational campaigns to help traders meet new compliance rules.
Support for Small Traders
GRA stressed a “supportive and collaborative” approach, especially for those leaving the flat rate system. The new Act raises the registration threshold to GHC750,000, sparing many micro-enterprises. Larger traders must now use the standard input-output method, and GUTA urged members to comply as the technical team develops long-term fixes.
Both groups highlighted this partnership’s role in driving national growth and safeguarding consumers.
Story by: Mercy Addai Turkson #ahotoronline.com