MoMo payments also attract 20% digital services tax, not only banks – GRA

The Ghana Revenue Authority (GRA) has clarified that the effective 20% tax on qualifying cross-border digital services will apply to payments made through mobile money (MoMo) and other digital payment platforms, not only bank cards.

Commissioner-General of the GRA, Anthony Kwasi Sarpong, said the tax would be collected regardless of the payment method used, provided the transaction falls within the applicable rules.

He made the clarification on Accra-based Joy FM’s Super Morning Show on Wednesday, October 14, ahead of the implementation of the new collection arrangement on Thursday, October 15, 2026.

“So once it's a transaction payment going through the banking system, it will route through a certain point from that payment, so it's not only for card. Assuming you are also using your MoMo to pay, that will also be captured,” he said.

The arrangement requires participating banks and payment service providers to collect and remit applicable taxes on qualifying digital transactions to the GRA.

The affected services include streaming platforms such as Netflix and Spotify, productivity tools such as Microsoft 365 and Zoom, and artificial intelligence platforms such as ChatGPT.

Other potentially affected services include cloud computing, online advertising, digital gaming and online learning, depending on the nature of the transaction and the applicable rules.

Mr Sarpong explained that the payment system would divide the transaction amount between the service provider and the government’s tax account.

“The system will split the value into two, one for the merchant or the supplier, and then the 20% VAT for government,” he added.

The effective 20% rate comprises 15% Value Added Tax (VAT), a 2.5% National Health Insurance Levy (NHIL) and a 2.5% Ghana Education Trust Fund (GETFund) Levy under the Value Added Tax Act, 2025 (Act 1151).

The October 15 rollout does not introduce a new tax.

Instead, it changes how the applicable taxes on qualifying cross-border digital services are collected, with banks and payment service providers playing a greater role in collecting and remitting the amounts.

For instance, a qualifying subscription costing GH¢1,000 before taxes would attract GH¢200 in combined taxes, bringing the total cost to GH¢1,200, if the applicable taxes have not already been included in the price.