GRA denies imposing new 20% tax on Netflix, Google and Amazon subscriptions

The Ghana Revenue Authority (GRA) has dismissed reports suggesting that a new digital Value Added Tax (VAT) collection system will impose an additional 20% tax on subscriptions and payments for digital services such as Netflix, Google and Amazon.

In a press release issued on Wednesday, October 14, 2026, the Authority clarified that the system does not introduce a new tax or increase the existing VAT rate but is intended to improve the collection of taxes already applicable to digital services provided by foreign companies to consumers in Ghana.

"The new system does not introduce a new tax or increase the existing VAT rate. Rather, it is intended to improve the collection and accounting of taxes already applicable to digital services supplied by non-resident companies to consumers in Ghana," the statement said.

The GRA explained that VAT on electronically supplied services by non-resident providers is an existing statutory obligation under Ghana's VAT legislation.

The effective tax rate remains 20%, comprising 15% VAT, a 2.5% National Health Insurance Levy (NHIL) and a 2.5% Ghana Education Trust Fund (GETFund) Levy.

GRA identifies additional digital service providers

The Authority disclosed that approximately 92 non-resident digital service providers are currently registered and remitting VAT to the GRA.

It said customers using these services would not face an additional charge on the same transaction where the applicable taxes had already been included in subscription prices.

However, the GRA said it had identified approximately 100 additional foreign digital service providers that were not currently charging and remitting the applicable taxes.

These providers will be progressively brought into the tax net, meaning consumers who use their services could see the statutory taxes reflected in their payments where the charges were previously not applied.

According to the Authority, the new collection system will allow the tax component of qualifying transactions to be identified and collected at the point of payment through participating financial institutions and payment service providers.

The arrangement is expected to improve compliance and ensure that tax revenue due to the state is properly accounted for.

System applies to digital services, not physical goods

The GRA further clarified that the system covers digital services rather than imported physical goods.

Affected services include streaming subscriptions, cloud computing, online gaming and digital advertising paid for through Ghana-issued payment instruments, including bank cards and mobile money.

Physical goods purchased through international e-commerce platforms will continue to be subject to the applicable Customs procedures.

The Authority said it would continue engaging banks, payment service providers and digital service providers to establish safeguards against duplicate tax collection and ensure that customers receive clear information about applicable charges.

"The introduction of a new tax must not be confused with improvements in the collection of an existing tax," the statement said.