GRA to Roll Out New VAT in 2026

The Ghana Revenue Authority (GRA) has announced that it will begin implementing major Value Added Tax (VAT) reforms from January 1, 2026. This follows the passage of the VAT Bill 2025 and its subsequent presidential assent, paving the way for a significant overhaul of the country’s tax system.
The reforms are designed to simplify tax administration, consolidate existing laws, abolish the COVID-19 Levy, and strengthen compliance through digitisation. According to officials, the changes will also promote fairness and support economic growth as Ghana intensifies efforts to enhance domestic revenue mobilization.
The initiative forms part of recommendations from the International Monetary Fund (IMF) aimed at reducing bureaucracies in tax collection and improving efficiency. Among the key changes are the unification of the flat-rate system, reduction of effective VAT rates, and the allowance for GETFund and National Health Insurance Levy (NHIL) to be treated as input tax. These measures are expected to boost revenue efficiency while easing the burden on businesses.
The reforms will also introduce digital innovations such as the E-VAT platform, which will enable accurate and transparent collection of taxes through electronic channels. This is expected to improve monitoring and reduce leakages in the system.
Speaking to journalists, Commissioner for the Domestic Tax Revenue Division, Dr. Martin Kolbil Yamborigya, explained that under the new regime, customers will pay 20 percent VAT instead of the current 21.9 percent. “There will be a lot of benefits for the taxpayer because we have now re-coupled the National Health Insurance Levy and Ghana Education Trust Fund. This will bring down the amount to be paid, meaning businesses will make some savings. It also becomes an input tax to be claimed at the end of the day,” he said.
The VAT Bill was passed in November 2025 after being presented to Parliament during the 2026 Budget statement and economic policy presentation. With presidential assent secured, the GRA is now fully empowered to implement the reforms, which are expected to reshape Ghana’s tax landscape and strengthen domestic revenue collection.