GRA to roll out revamped 20% VAT regime from January

Ghana’s Value Added Tax (VAT) system is set for a major reset from 1 January 2026, the Ghana Revenue Authority (GRA) has confirmed.

The rollout follows parliamentary approval and presidential assent to the VAT Bill, 2025, which introduces sweeping changes aimed at simplifying the tax regime, consolidating multiple levies and improving compliance through digital tools.

Under the new framework, the effective VAT burden on standard-rated goods and services will fall from about 21.9% to 20%, after the National Health Insurance Levy (NHIL) and GETFund levy are re-integrated into the main VAT system and treated as input tax.

GRA says the reforms are designed to make the system fairer, support economic growth and strengthen domestic revenue mobilisation, in line with recommendations from the International Monetary Fund to streamline tax administration and reduce bureaucracy.

Key measures include:

A unified flat-rate structure

A lower effective VAT rate at the point of sale

The ability for businesses to claim NHIL and GETFund as input tax

Greater use of electronic tools such as e-VAT for real-time reporting and collection

Briefing journalists, Commissioner for the Domestic Tax Revenue Division, Dr Martin Kolbil Yamborigya, said the adjustments should translate into cost savings for compliant businesses and, ultimately, consumers.

“Taxpayers will now be paying 20% instead of 21.9% on their goods and services,” he explained, adding that re-coupling NHIL and GETFund “will bring down the amount to be paid” and allow firms to recover more of their tax outlays as input VAT.

The bill was laid before Parliament with the 2026 Budget and economic policy statement and secured passage in November. Presidential assent has now given the GRA the legal backing to proceed with implementation from the start of the new year.