GRA has broadened 20% VAT on digital services to include previously excluded transactions – Dr Boako

The Member of Parliament for Tano North, Dr Gideon Boako, has said the Ghana Revenue Authority (GRA) has broadened the scope of value-added tax (VAT) on digital services to cover transactions that were previously not subject to the tax.

He argued that although the GRA maintains that it has not introduced a new tax, the expanded coverage will increase the cost of digital services for consumers who previously did not pay VAT on them.

Dr Boako made the remarks in a social media post on Friday, October 16, while criticising the implementation of the 20% VAT on cross-border digital services.

“What GRA has actually done is broaden the base of VAT to cover transactions you never paid VAT on before. That, by definition, is a new tax to you,” he stated.

The MP cited the inclusion of additional foreign digital service providers as evidence of the expanded tax coverage, noting that the GRA had identified more companies that were previously not charging the tax.

He argued that the distinction between introducing a new tax and expanding the scope of an existing one did not change the financial impact on consumers.

Dr Boako also questioned the 20% rate, noting that it could increase the cost of digital tools used by students, entrepreneurs and small businesses.

The Tano North MP further criticised the application of the VAT to payments for digital services made through mobile money platforms, including MTN MoMo, Telecel Cash and AT Money.

“We ended E-levy only to get E-levy Pro Max – broader, automatic, no threshold, no exemption,” he said.

The MP called on the Ministry of Finance and the GRA to acknowledge the economic implications of the policy for consumers rather than focusing solely on its legal classification.