Ghana Introduces Major VAT Reforms Under New VAT Act, Effective January 2026
The Government of Ghana has announced sweeping reforms to the country’s Value Added Tax (VAT) system following the passage of the Value Added Tax Act, 2025 (Act 1151). The new law, which takes effect on January 1, 2026, is aimed at simplifying VAT administration, reducing the tax burden on businesses and households, and improving voluntary tax compliance.
In a notice issued to all VAT-registered taxpayers and the general public, the Ghana Revenue Authority (GRA) outlined several key changes under the new Act.
One of the major reforms is an increase in the VAT registration threshold for businesses dealing in goods. The threshold has been raised significantly from GH¢200,000 to GH¢750,000, a move expected to reduce compliance pressure on small and medium-sized enterprises.
The Act a...