The Ghana Revenue Authority (GRA) has dismissed reports suggesting that a new digital Value Added Tax (VAT) collection system will impose an additional 20 per cent tax on subscriptions and payments for services such as Netflix, Google and Amazon.
The Authority said the system would not introduce a new tax or increase existing rates but would improve the collection and accounting of taxes already applicable to digital services supplied by non-resident companies to consumers in Ghana.
In a statement issued on Wednesday, October 14, 2026, the GRA explained that the effective tax rate on qualifying digital services remains 20 per cent, comprising 15 per cent VAT, 2.5 per cent National Health Insurance Levy (NHIL) and 2.5 per cent Ghana Education Trust Fund (GETFund) Levy.
It stressed that consumers who already pay the applicable taxes through their subscriptions should not be charged again for the same transaction following the introduction of the new system.
The GRA said approximately 92 non-resident digital service providers were currently registered and remitting VAT to the Authority.
However, it has identified about 100 additional foreign digital service providers that are not currently charging and remitting the applicable taxes. These providers will progressively be brought into compliance.
According to the Authority, consumers using services from those providers may see the statutory taxes reflected in their payments where the charges were previously not applied.
The new system is expected to improve transparency and accountability by enabling the tax component of qualifying transactions to be identified and collected at the point of payment through participating financial institutions and payment service providers.
Under the existing arrangement, the GRA relies largely on foreign digital service providers to declare their transactions and remit the taxes due.
The Authority said the new mechanism would strengthen compliance and ensure that revenue owed to the State is properly accounted for.
It clarified that the system applies to qualifying electronically supplied services, including streaming subscriptions, cloud computing, online gaming and digital advertising paid for through Ghana-issued payment instruments such as bank cards, mobile money and other digital payment platforms.
Physical goods purchased from international e-commerce platforms are not covered by the new digital services collection system and will remain subject to applicable Customs procedures.
The GRA said it would continue engaging banks, payment service providers and digital service companies to prevent duplicate tax collection and ensure consumers receive clear information about applicable charges.
It urged members of the public who encounter charges that appear inconsistent with the clarification to contact the Authority through its official channels for assistance and redress.
The Authority said the objective of the system was to promote compliance, ensure fairness between resident and non-resident service providers, and improve domestic revenue mobilisation without introducing additional taxes.
Read the statement below:
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