Digital VAT collection system will not add another 20% to existing charges – GRA clarifies

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The Commissioner-General of the Ghana Revenue Authority (GRA), Anthony Kwasi Sarpong, says the new digital Value Added Tax (VAT) collection system will not impose an additional 20% charge on subscriptions to platforms already collecting the tax.Speaking on Joy FM’s Super Morning Show on Wednesday, 14th October 2026, during a discussion on VAT on Netflix, Spotify and other digital services, he explained that the system changes how existing taxes are collected.“So this system is not adding another 20 per cent to what you already pay. It is already embedded, and consumers are paying,” he said.Mr Sarpong said the GRA currently receives VAT remittances from about 92 foreign service providers, whose customers should not experience price increases arising from the change in collection.“Nothing will change in terms of pricing from 92 merchants or entities,” he stated.However, he disclosed that the Authority had identified about 100 additional providers that were not charging VAT and would gradually bring them into the collection system.His assurance on unchanged charges therefore applies to services whose prices already include the applicable tax.Explaining the reform, Mr Sarpong said the GRA currently relies on foreign providers to report their transactions and remit the tax collected from consumers in Ghana.This arrangement, he said, limits the Authority’s ability to independently verify the number and value of transactions.Using Netflix as an example, he explained that the new system would separate the tax component at the point of payment, transfer it to the government and send the remaining amount to the provider.“We are using technology to smartly account for and collect the component that belongs to the government of Ghana,” he said.The system would also allow the Authority to establish how many transactions had taken place, their value and the corresponding tax due, rather than relying solely on information supplied by the companies.The clarification follows the introduction of the GRA’s Real-Time VAT framework for qualifying cross-border digital services. In an earlier report, Elsie Appau-Klu, Technical Advisor to the Commissioner-General, said the framework collects existing VAT at the point of payment through participating financial institutions. The combined 20% charge comprises 15% VAT, a 2.5% National Health Insurance Levy and a 2.5% GETFund Levy.The framework covers electronically supplied services from non-resident providers paid for using Ghana-issued payment instruments, including cards, mobile money accounts and digital wallets. Streaming subscriptions, cloud computing, online gaming and digital advertising are among the services covered.READ ALSO: Banks to charge 20% VAT on payments for Netflix, Zoom, TikTok and othersMr Sarpong confirmed that collection would extend beyond bank card payments.“So it’s not only for a card,” he said, explaining that mobile payments and other digital payment platforms would also be captured when qualifying transactions pass through the payment system.He further clarified that the initial rollout covers services rather than physical goods purchased from platforms such as Amazon and Alibaba.According to him, imported goods already undergo tax assessment at Ghana’s borders, where the applicable duties and VAT are calculated.“So it is not going to affect goods or products, tangible products at the moment,” he said.Although physical goods could be considered in future, Mr Sarpong stressed that they were outside the initial rollout.