The Ghana Revenue Authority (GRA) has urged Ghanaians to make tax compliance part of their daily routine by requesting a VAT invoice whenever they pay for goods or services.
Commissioner-General Anthony Kwasi Sarpong made the appeal during the 2025 Oguaa Fetu Afahye in Cape Coast, noting that demanding a VAT invoice is a simple but powerful way for citizens to contribute to national development.
He said, “As we enjoy the celebrations, we should remember that the nation is developed by the taxes we collect. By asking for your VAT invoice at restaurants, hotels, and shops, you are helping the country grow.”
According to the GRA, Ghana’s effective VAT rate as of 2025 stands at around 21.9%, which includes a 15% standard VAT rate, a 2.5% National Health Insurance Levy (NHIL), a 2.5% Ghana Education Trust Fund Levy (GETFund), and a 1% COVID-19 Health Recovery Levy.
The authority notes that the current structure has been criticized for creating a cascading effect, where taxes are levied on top of other taxes, raising the final price for consumers and complicating compliance for businesses.
The GRA and the Ministry of Finance are reportedly implementing a comprehensive VAT reform aimed at simplifying the tax system and improving compliance. The reforms include reducing the effective VAT rate from 21.9% to 20% by 2026, repealing the 1% COVID-19 Health Recovery Levy, and decoupling the NHIL and GETFund levies from VAT to eliminate the cascading effect.
The authorities also plan to replace the current system, which includes separate VAT flat rates for different sectors, with a single standard VAT rate to streamline compliance and enforcement.
In addition, the VAT registration threshold will be raised to exempt smaller businesses, while the use of electronic sales gadgets under the Fiscal Electronic Device Act will be enforced to ensure proper issuance of electronic VAT invoices.
The GRA has indicated that these reforms are being implemented in consultation with stakeholders, including workshops with traders, business groups, public forums, and sector-specific discussions. The new VAT Bill is expected to be drafted by October 2025 and submitted to Parliament as part of the 2026 Budget Statement.
Mr. Sarpong also highlighted the GRA’s commitment to public education on tax compliance, noting that the recent donation of GH¢100,000 to the Central Regional NADMO and the Cape Coast Metropolitan Assembly to support flood victims demonstrates the authority’s role in national development beyond revenue collection.
Speaking to JoyNews during the festival, he reiterated that every VAT invoice issued contributes to sustainable development in the country, emphasizing the importance of making tax payment an essential priority.
