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.
Ghana: The recent Tax Act amendment became effective.
Public
Ghana
Author: Kristina Dosen
Category:
Fiscal subject related
Views:
76
Content accuracy validation date:
28.03.2024
Content accuracy validation time:
11:52h
Content
- Reducing the VAT rate applicable to commercial properties from 15% to 5%;
- Introducing a flat rate tax of 5% on the rental of commercial properties other than commercial rental establishments and the supply of immovable property by an estate developer;
- Extending the zero rate of locally manufactured textiles and vehicles to December 31, 2025;
- Introducing the zero-rate of locally manufactured sanitary towels;
- Waiving tax on electric vehicles for public transportation (such as buses);
Additionally, the Ministry of Finance has suspended the implementation of 15% VAT on residential electricity consumption when such consumption is above the maximum consumption level specified for block charges for lifeline units as of January 1, 2024. The suspension takes effect pending further engagements with key stakeholders (without a specific deadline so far).
The first schedule of the VAT Act 2013 (Act 870) exempts a supply of dwelling electricity up to the maximum consumption level specified for block charges of lifeline units from VAT. This means that any supply of electricity above the maximum level would generally not be exempt from VAT.
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
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
Ghana's 2024 Budget: what businesses need to know about the VAT Changes
Public
Ghana
Author: Kristina Dosen
Ghana
Author: Kristina Dosen
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:. 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 an... 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