Ghana's Ministry of Finance has published the 2024 Budget Statement delivered in this country's Parliament. Tax measures announced as part of the budget include the following, as written below:.
Ghana's 2024 Budget: what businesses need to know about the VAT Changes
Public
Ghana
Author: Kristina Dosen
Category:
Fiscal subject related
Views:
1243
Content accuracy validation date:
20.12.2023
Content accuracy validation time:
07:37h
Content
- Certified invoices will be required as the basis for all deductible expenses for income tax purposes.
- The second phase of the electronic invoicing system (e-VAT), covering six hundred large taxpayers and more than two thousand small and medium taxpayers, will be implemented.
- The implementation of upfront VAT on imports of VATable goods by unregistered importers will continue.
- A VAT flat rate of 5% will replace the 15% standard VAT rate on all commercial properties.
- Certain VAT exemptions will be reviewed to reduce distortions and abuses in the system.
- The VAT zero-rating on the supply of locally manufactured African prints and locally assembled vehicles will be extended for an additional two years.
- Environmental levies will be introduced on plastic packaging and industrial and vehicle emissions.
The VAT rate for smaller retail companies in Ghana is currently a flat rate of 4%, which includes 3% VAT and a 1% COVID-19 levy. This rate applies to the value of taxable supplies of goods by a retailer who makes between GHS 200,000 and GHS 500,000 in annual turnover. Otherwise, retailers who make more than GHS 500,000 in annual turnover are subject to the standard VAT rate of 15%.
The government intends to extend the VAT zero-rating provision for locally manufactured textiles and locally assembled vehicles until December 2025. This means that the retailers who sell these products will not charge VAT on them but will be able to claim input tax credits for the VAT they paid on their purchases.
Also, the government intends to reduce the rate of VAT and levies on locally manufactured sanitary pads from 15% to 0%. This means that the retailers who sell these products will also not charge VAT on them but will be able to claim input tax credits for the VAT they paid on their purchases.
Additionally, Ghana's government plans to expand the coverage of the VAT electronic invoicing system to cover a wider range of taxpayers. This means that more retailers will have to use the electronic invoicing system to issue invoices to their customers and report their sales data to the tax authorities.
Besides the mentioned plans, the government also proposes to expand the coverage of environmental excise duties to include plastic packaging and industrial and vehicle emissions. This means that retailers who use plastic packaging or operate vehicles for their businesses will have to pay additional taxes to the government.
Other news from Ghana
Ghana's dual approach when it comes to fiscal receipt forms
Public
Ghana
Author: Kristina Dosen
Ghana
Author: Kristina Dosen
In Ghana, the flexibility in issuing fiscal receipts is notable, as taxpayers are provided with multiple options for how they can deliver these receipts to their customers. Specifically, there are two principal forms of receipts that are allowed to be used and include printed and e-receipts. Printed Receipts: These are the traditional hard-copy receipts that can be provided by retailers during... Read more
New document was uploaded: Digital Product Passport
Author: Kristina Dosen
Do you even know what DPP is? Digital Product Passports (DPP) are set to play a crucial role in the European Union’s commitment to a circular economy. The purpose of this document is to provide you with a necessary overview of the upcoming Digital Product Passport requirements set to be implemented by the European Union. Read more
Ghana: The recent Tax Act amendment became effective.
Public
Ghana
Author: Kristina Dosen
Ghana
Author: Kristina Dosen
The recent amendments to the tax regulations bring a series of changes to Ghana, particularly in the VAT rates affecting certain sectors. These adjustments aim to incentivize certain economic activities while ensuring that essential services remain accessible. Significant amendments include some changes in the area of indirect taxes, as explained below. Reducing the VAT rate applicable to comme... Read more
New document was uploaded: Recorded webinar: It’s time to grow together
Public
Author: Kristina Dosen
In this discussion, we have introduced our new partner program and what is essential for international growth, while dealing with topics such as - Success factors for POS applications - What does globalization mean? - How to grow globally? Furthermore, we presented benefits for our partners. Last but not least, we presented our fiscal cloud architecture and its important features.You can down... Read more
Types and handling of discounts in Ghana: what do you need to know?
Ghana
Author: Kristina Dosen
Discounts are allowed in Ghana for various reasons, as long as they are fair and transparent. There are some rules for the types, treatments, and presenting discounts on receipts. There are two types of discounts in Ghana: item discounts and total discounts. So, let's find out more about them. Read more
How to register for VAT in Ghana: A Guide for new businesses who are starting to operate in this country
Public
Ghana
Author: Kristina Dosen
Ghana
Author: Kristina Dosen
Starting a new business in Ghana can be an exciting and rewarding venture, but it also comes with some responsibilities and obligations. One of them is to register for VAT if you meet certain criteria and thresholds. In this article, we will explain what VAT is, who needs to register for it, and how to do it in Ghana. The following provides more in-depth information VAT stands for Value Added Tax... Read more