Ghana

Value Added Tax (Amendment) Act, 2023 (Act 1107)

Supply of immovable property

A flat value-added tax (VAT) rate of 5% is applicable on the taxable supply of immovable property by a taxable person:

• for rental purposes other than for accommodation in a dwelling or in a commercial rental establishment, or
• who is an estate developer.                                                                  

The flat rate of 5% is also applicable to the lease, sale, transfer, and other forms of supply of commercial space and property. 

The taxable person is not entitled to input VAT deduction in respect of these supplies.

Penalty on the failure to withhold and pay withholding VAT

Act 1107 imposes a penalty on an appointed VAT withholding agent who fails to withhold VAT and remit the same to the Ghana Revenue Authority (GRA) by the 15th day of the month following the month in which the withheld amount is due. The penalty is 30% of the amount in default.

The VAT withholding agent is allowed to recover the VAT that should have been withheld from the vendor but not the penalty, if any.

VAT on non-life insurance

VAT is applicable on the supply of non-life insurance, which was previously exempt for VAT purposes. 

Insurance companies engaged in the supply of non-life insurance contracts will be allowed to make input VAT deductions on amounts equal to the tax fraction of any amount paid during the tax period by the taxable person (insurer) to indemnify the insured person under a non-life insurance contract.

VAT on air transport

Act 1107 re-introduces VAT on (domestic) transportation by air.

Exemption on importation of electric vehicles

Act 1107 provides for an import VAT waiver on electric vehicles for public transportation. 

Extension of zero-rate concession on locally manufactured textiles and assembled vehicles

The zero-rate concession for the supply of textiles by a local manufacturer and the supply of locally assembled vehicles under the Ghana Automotive Development Programme has been extended to 31 December 2025.  

Zero-rating of locally manufactured sanitary towels

Act 1107 zero-rates the supply of locally manufactured sanitary towels. 

Removal of exemption on specified goods and services

Act 1107 removes the exemption on the supply of certain goods and services, such as imported textbooks, exercise books, publications, and charts, other printed matter, and postal stamps issued by the Ghana Post. 

Customs (Amendment) Act 2023 (Act 1106)

There is a waiver of import duties on raw materials used in the production of sanitary towels. Act 1106 also includes tariffs on other imported items.  

Excise Duty (Amendment) (No. 2) Act, 2023 (Act 1108)

The excise duty rate on cider beer is increased to 47.5%.

Additionally, the excise duty applicable on plastics have been reduced to 5% and the coverage extended to include imported plastic packaging. 

Stamp Duty (Amendment) Act, 2023 (Act 1109)

Act 1109 revises the rate of stamp duties to provide for a more realistic fee in line with current economic conditions.  

Exemptions (Amendment) Act, 2023 (Act 1110)

Act 1110 waives the customs duties and taxes on the importation of fishing gear (including fishing float) for agricultural purposes that is:

• certified by the Minister of Fisheries and Aquaculture Development, and 
• approved by the Minister of Finance.

Emissions Levy Act, 2023 (Act 1112)

An emissions levy is imposed on the carbon dioxide equivalent emissions from specified sectors and emissions from vehicles. The levy payable is as follows:

• Carbon dioxide equivalent emissions from the construction, manufacturing, mining, oil and gas, and electricity and heating sectors: 100 Ghana cedi (GHS) per tonne of emissions per month.
• Emissions from motor vehicles: GHS 75 to GHS 300 per annum depending on the internal combustion engine vehicles.