Ghana’s headline VAT rate is 15%. The rate you actually pay is 21.9%.
Ghana VAT and levies calculator
Add or remove Ghanaian VAT, NHIL, GETFund and the COVID-19 levy, and see why the effective rate is higher than the headline 15%.
Why the two numbers differ
Three levies are charged on the value of a supply before VAT is applied, and VAT is then charged on the total including them:
| Charge | Rate | Charged on |
|---|---|---|
| NHIL | 2.5% | The value |
| GETFund levy | 2.5% | The value |
| COVID-19 Health Recovery Levy | 1% | The value |
| VAT | 15% | The value plus the levies |
The levies add 6%. VAT is then charged on that larger base, which is what takes the total to 21.9%.
Registration
VAT registration is compulsory once taxable turnover exceeds ₵200,000 in a twelve-month period. Retailers within a turnover band may instead use the VAT Flat Rate Scheme at 3%.