The Ghana Revenue Authority (GRA) introduced a real-time VAT (RTVAT) collection mechanism on October 15, 2026, for qualifying digital services supplied to customers in Ghana by non-resident providers. Under this arrangement, commercial banks and other designated payment intermediaries collect the applicable VAT and related levies when customers pay for these services.
What Changes for Digital Service Providers
Since 2022, non-resident providers of digital services and e-commerce to Ghanaian customers have been required to register for VAT, regardless of turnover, as no registration threshold applies. According to the GRA, about 92 non-resident providers are registered and remit VAT, while about 100 others have been identified as not charging the tax.
Under the previous system, customers paid the full invoice amount, including VAT, directly to the provider. The provider then had to remit the tax to the GRA by the end of the month after the transaction. Under RTVAT, participating banks and payment intermediaries collect the VAT when they process payments to non-resident providers.
The RTVAT mechanism applies when three conditions are met: the payment instrument, such as a bank card, mobile money account, or digital wallet, is issued in Ghana; the provider or supplier is a non-resident; and the service is supplied electronically. Examples include streaming and subscription platforms, cloud services, online gaming, and online marketplaces.
RTVAT applies to both VAT-registered and unregistered non-resident digital service providers. However, the mechanism does not eliminate the obligation to register for VAT or submit monthly VAT returns. Detailed rules for reconciling VAT collected through RTVAT with suppliers’ reported tax liabilities have not yet been published. The new system does not apply to imported physical goods, which remain subject to customs procedures, as the GRA emphasised.
Key Takeaways
This shifts the collection point from the provider to the payment intermediary, reducing reliance on non-resident providers to collect and remit the tax themselves. However, non-resident digital service providers should not neglect VAT registration requirements, as failing to meet them may result in penalties of at least three times the VAT payable for the period between when registration became mandatory and when they applied. They may also face restrictions on access to Ghana until they complete registration and settle any applicable penalties.
