Commissioner-General of the Ghana Revenue Authority, Anthony Kwasi Sarpong, has assured that beginning today, January 1, 2026, the Ghana Revenue Authority will charge the new VAT rate of 20 per cent instead of the old rate of 21 per cent.
He explained that the move is aimed at simplifying VAT payments for businesses and service providers, as well as boosting revenue mobilisation.
Speaking to Joy Business in an interview, he said that based on the many reforms and adjustments made to the tax law to simplify payments, the new VAT regime will be a game-changer for revenue mobilisation in the short term.
“To bring parity to the system, we have removed the flat rate so that everyone consuming will be eligible to pay the standard rate. We believe that with a lot of administrative measures and reforms in the new system, VAT is going to be the game-changer as far as revenue generation in this country is concerned, and we’re looking forward to working with businesses to equip taxpayers to ensure that they understand their VAT obligations. Every consumer in this country must demand a VAT receipt whenever making a purchase,” he said.
This follows the passage and subsequent presidential assent to the VAT Bill, 2025.
The development marks a significant overhaul aimed at simplifying the country’s tax system, consolidating laws, abolishing the COVID-19 Levy, and improving compliance through the digitisation of revenue administration.
The law also aims to promote greater fairness and economic growth as the country makes progress toward enhancing domestic tax mobilisation.
The reform forms part of recommendations from the International Monetary Fund to reduce bureaucracy in tax collection.
Key changes include unifying the flat-rate system, reducing effective rates, allowing the deduction of GETFund and NHIL as input tax, and boosting revenue efficiency.
This will also include the deployment of digital channels such as E-VAT for accurate collection.
Meanwhile, in a New Year message to the nation, the Commissioner-General stressed the need for collaboration between the business community and tax officials to ensure a mutual understanding in enhancing revenue for development.
