VAT rates and the latest change in the standard VAT rate in Ghana in 2023

In Ghana, the current standard VAT rate stands at 15% for all transactions that take place within the country, unless specific exceptions apply. This rate has been in effect since the first quarter of 2023, following the amendment of VAT Act No. 1087.

Under the existing VAT regulations, businesses and consumers engaging in transactions can expect the standard VAT rate of 15% to be applicable unless falling under specific exemption categories.

In addition to the standard rate, there is a reduced VAT rate of 3% reserved for taxable persons operating under the special VAT scheme. This reduced rate aims to support eligible businesses and foster growth in targeted sectors by offering a more favorable tax burden.

Certain cases benefit from a zero (0%) VAT rate, meaning they are exempt from VAT charges. Moreover, the VAT framework in Ghana recognizes exempted supplies, which are transactions or goods that are not subject to VAT charges. This exemption ensures that certain essential items or services remain affordable and accessible to the public.

Ghana's current VAT system, as governed especially by the amended VAT Act No. 1087 and other VAT amendments, underscores the significance of taxation in supporting the country's economy in the last few years.