Policy and data analyst Alfred Appiah has raised four critical questions about Ghana’s implementation of VAT on cross-border digital services.
The analyst argues that these unresolved issues could create confusion for consumers and businesses despite the government’s efforts to improve tax collection.
The Ghana Revenue Authority (GRA) maintains that the 20% VAT on cross-border digital services is not new. What has changed is the collection mechanism, with banks and mobile money providers deducting the tax when customers pay for services and notifying them through SMS or email.
However, Appiah argues that important questions remain unanswered, even after reviewing the GRA’s published frequently asked questions.
First, what happens when foreign providers delay updating their prices?
Registered digital service providers are expected to display prices excluding VAT so that banks can add the tax at payment. Appiah questions what happens if providers are slow to adjust their pricing. Could customers temporarily pay VAT twice, once through the provider’s price and again through the bank’s deduction?
Second, how will businesses recover VAT charged on digital services?
Businesses generally recover eligible VAT paid on business inputs. But companies purchasing Google Ads, cloud computing and other digital services with bank cards may have VAT deducted automatically.
Alfred Appiah wants clarity on how these businesses can claim the tax back and avoid turning a recoverable expense into an additional business cost.
Third, how quickly will wrongly charged customers receive refunds?
Under the arrangement, customers who believe they have been incorrectly charged must seek refunds through their banks or mobile money providers. The analyst questions how long refunds will take, highlighting the need for clear timelines and an accessible process for resolving disputes.
Fourth, could Ghana’s relatively high VAT rate encourage tax avoidance?
Ghana’s 20% rate is higher than Kenya’s 16%, South Africa’s 15%, Egypt’s 14% and Nigeria’s 7.5%. Alfred Appiah raises concerns that the difference could encourage some users to seek alternative payment channels that fall outside the collection system.
The questions come as Ghana seeks to strengthen domestic revenue mobilisation. A June 2026 study by the Ministry of Finance and the Institute for Fiscal Studies estimated that the country failed to collect about GH¢69 billion in potential VAT revenue in 2024, equivalent to 5.9% of GDP.
Registered foreign digital providers generate an estimated GH¢515 million annually, highlighting the comparatively modest revenue at stake against the wider compliance challenge.
For Appiah, the objective should extend beyond collecting taxes from digital transactions. The GRA must also provide clear answers on pricing, business refunds, customer complaints and potential avoidance to ensure that the system is transparent, fair and effective.
