No additional 20% tax introduced on digital services – GRA clarifies 

The Ghana Revenue Authority (GRA) has clarified that the implementation of a new digital tax collection system will not introduce an additional 20% tax on subscriptions and payments for services such as Netflix, Google and Amazon.

The Authority said the system is designed to improve the collection of existing taxes on electronically supplied services by foreign companies to consumers in Ghana.

The clarification follows public concerns that the new system, which takes effect on Thursday, October 15, 2026, could increase the cost of digital subscriptions and other online services.

In a statement issued on Wednesday, October 14, the GRA explained that the applicable effective tax rate remains 20%, comprising 15% Value Added Tax (VAT), 2.5% National Health Insurance Levy (NHIL) and 2.5% Ghana Education Trust Fund (GETFund) Levy.

“No new tax is being introduced. VAT on electronically supplied services by non-resident providers is an existing statutory obligation under Ghana’s VAT legislation,” the Authority said.

The GRA disclosed that approximately 92 foreign digital service providers are currently registered and remitting VAT, while about 100 others have been identified for inclusion in the tax system.

It explained that consumers who already pay the applicable taxes through their subscriptions should not be charged again when the new collection system is implemented.

However, users of services whose providers have not been charging and remitting the applicable taxes could see the statutory charges reflected in their payments as those providers are brought into compliance.

The new system will enable the tax component of qualifying transactions to be identified and collected at the point of payment through participating financial institutions and payment service providers, including those handling bank cards and mobile money transactions.

“The objective of the new system is to strengthen compliance, promote fairness between resident and non-resident service providers, and ensure that taxes already required by law are accurately collected and duly accounted for,” the Authority said.