Ghana: VAT measures from 2026 budget enacted
COVID-19-related 1% levy on domestic supply and importation of goods and services also repealed.
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february 20, 2026
The president assented to the Value Added Tax (VAT) Act, 2025 (Act 1151), which contains various VAT changes presented in the 2026 budget, including:
- Expansion of scope of activity subject to VAT to expressly include exploration of natural resources and export of traditional products
- Reduction in effective VAT rate from 21.9% to 20% (consisting of 15% VAT, 2.5% national health insurance levy (NHIL), and 2.5% Ghana education trust fund levy (GETFL))
- Repeal of VAT flat rate scheme
- Increase in VAT registration threshold from GH¢200,000 to GH¢750,000
- Extension of zero-rated VAT on locally manufactured textiles until December 2028
The president also assented to the Covid-19 Health Recovery Levy (Repeal) Act, 2025. As a result, the 1% levy on the domestic supply and importation of goods and services has not been charged since January 1, 2026.
Read a February 2026 report prepared by the KPMG member firm in Ghana