The Ghana Revenue Authority (GRA) has issued a key clarification on the new Value Added Tax (VAT) reforms: the GH¢750,000 annual threshold applies solely to businesses supplying goods, sparing service providers from this requirement.
This guidance came during a public lecture on Friday, January 2, 2026, just after the reforms took effect on January 1. Dr. Dominic Naab, Acting Head of the GRA’s Strategy and Research Department, emphasized that while there’s no threshold for services, all service providers must register under the updated VAT system.
“The GH¢750,000 threshold applies only to goods,” Dr. Naab said. “For services, no threshold exists—so by law, the Commissioner-General must ensure every service provider registers.”
He also urged businesses below the threshold that haven’t been officially deregistered to keep charging the standard 20% VAT rate—excluding the 1% COVID-19 levy and the former 3% flat rate. “Until you get official word from the Commissioner-General confirming deregistration or continued status, you’re still a registered VAT entity and must charge the standard rate,” Dr. Naab added.
The changes aim to streamline compliance and boost economic efficiency.
Story by: Mercy Addai Turkson #ahotoronline.com