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Ghana VAT on foreign digital services

The West African country of Ghana imposed its Value Added Tax on non-resident providers of digital or electronic services to consumer from 1 January 2014. There is a VAT registration threshold of GHS 200,000 per annum (approx €28,000).

The current VAT rate in Ghana is 12.5%.  VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

What digital services are subject to Ghanaian VAT?

Income from the following digital services transmitted by wire, radio, optical or other electromagnetic systems is liable to Ghanaian VAT:

  • Electronic commerce
  • Data transmission
  • Website hosting
  • Streaming or download media (video, music etc)
  • E-learning
  • Images and text
  • Distance maintenance of programmes and equipment

VAT registration and returns

If a non-resident passed the VAT registration threshold of GHS 200,000 per annum then they should register with the Commissioner-General of the URA. Or GHS 50,000 in three months and with reasonable grounds to exceed turnover of GHS 150,000 in the next nine months. A VAT agent is likely to be required.

Once VAT registered, VAT returns are required on a monthly basis. These should be filed by the 21st of the following month along with any VAT due.

Africa & Middle East VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Algeria 9% Jan 2020 Nil
Angola 14% Oct 2019
Bahrain 10% Jan 2019 Nil
Cameroon 19.5% Jan 2020 XAF 50 million
Egypt 14% Sep 2016 EGP 500,000
Ghana 12.5% Apr 2022 GHS 200,000
Israel 17% 2022 Proposal in 2021/22 budget
Ivory Coast 18% 2022 -
Kenya 16% Sep 2013 -
Kuwait 5% Jan 2023? - TBC
Mauritius 15% 2020
Nigeria 7.5% Jan 2020 $25,000
Oman 5% Apr 2021 OMR 35,000
Rwanda 18% TBC
Saudi Arabia 15% Jan 2018 Nil
South Africa 15% Jun 2014 ZAR 1 million
Tanzania 18% Jul 2015 TZS 40 million Only resident
Tunisia 19% Jan 2020 Nil Withholding VAT; 3% Royalty Tax
Uganda 18% Jan 2020 Nil
United Arab Emirates 5% Jan 2018 AED 375,000
Zimbabwe 14.5% Jan 2020 Nil

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