Ghana Explores Digital VAT Collection for Non-Residents

December 28, 2025

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Ghana's 2025 Mid-Year Fiscal Policy Review report and 2026 Budget Speech signaled the government's commitment to reforming the VAT system to strengthen fairness, transparency, neutrality and administrative efficiency across the overall tax system.

An essential element of this reform is implementing new digital solutions to track and collect VAT on cross-border transactions made through non-resident digital platforms. With the latest update on this matter, the Ghanaian government confirmed that it is exploring digital solutions to collect VAT at source on these cross-border transactions.

Impact on Non-Resident Digital Platform Operators

Non-resident digital service providers supplying services for use or enjoyment in Ghana have been required to charge, collect, and remit VAT on those services since 2022. Under the current regime, consumers pay the full invoice amount, including VAT, directly to the provider. The provider is liable to file monthly returns and remit the tax to the Ghana Revenue Authority (GRA).

However, providers are not required to hold funded accounts with local financial institutions, withhold any portion of taxes, or appoint local tax agents or representatives. The government determined that the absence of structural safeguards increases the risk of revenue loss if a non-resident provider fails to remit collected VAT to the GRA. Thus, the proposed solution will enable GRA to monitor and collect VAT in near real-time, and increase oversight of non-resident service providers who currently do not comply with their VAT obligations.

Conclusion

The proposed system will enable local financial institutions or payment service providers to identify, estimate, withhold, and remit the VAT portion of payments made to non-resident service providers. However, the GRA is currently piloting this solution and plans to issue further guidance before implementing it fully. In addition to evaluating how this measure could affect their VAT compliance processes in Ghana, non-resident digital platform operators should continue to monitor the further development and guidance on the matter.

Source: Deloitte, VATabout

What is Ghana's new approach to VAT on non-resident digital services?

Ghana is exploring a digital VAT collection system that allows local institutions to withhold and remit VAT on payments to non-resident digital service providers, improving compliance and oversight.

Who is affected by Ghana's proposed VAT system for digital services?

Non-resident digital service providers supplying services for use or enjoyment in Ghana are affected, as they will need to comply with real-time VAT collection mechanisms.

How does the current VAT system work for non-resident providers in Ghana?

Currently, non-resident providers charge VAT on invoices, collect it from consumers, and remit it to the Ghana Revenue Authority through monthly returns without holding local accounts or appointing representatives.

Why is Ghana implementing a new digital VAT solution?

The government wants to reduce revenue loss risks, increase transparency, and ensure non-resident providers comply with VAT obligations by enabling near real-time monitoring and collection.

How will local financial institutions be involved in the new system?

Local banks and payment service providers will be able to identify VAT amounts in payments to non-resident providers, withhold the tax, and remit it directly to the Ghana Revenue Authority.

When will Ghana's digital VAT collection system be fully implemented?

The system is currently in the pilot phase, and the GRA plans to issue further guidance before full implementation. Non-resident providers should monitor updates to adjust their compliance processes.

Ghana

Africa

Cross-border transactions

Digital Platforms

Tax Compliance

Digital Service Providers

VAT Compliance and Reporting

VAT

Digital