The Ghana Revenue Authority (GRA) has held a meeting with the Ghana Union of Traders’ Association (GUTA) to assist the Association members in transitioning to the new VAT Reforms.
The joint consultative meeting was held between the Commissioner-General and Management of the Ghana Revenue Authority (GRA) and the President and the Executives of the Ghana Union of Traders’ Association (GUTA) following the implementation of the new VAT Reforms at the beginning of the year.
Deliberations were made on the Value Added Tax Act, 2025 (Act 1151), to clarify and to support GUTA members who operated under the VAT Flat Rate Scheme to transition to the new VAT Reforms. The meeting addressed all the transitional issues GUTA members had associated with the rollout of the new VAT Reforms.
The consultative meeting numbers among the many that the GRA has held with stakeholders, businesses, and business groups to provide education and assistance to facilitate compliance with the new VAT Reforms.
Facilitating Rollout of the New Reform
During the meeting, it was agreed that, as stipulated in the new Value Added Tax Act, 2025 (Act 1151), eligible businesses, including members of the Ghana Union of Traders’ Associations (GUTA), are required to charge a total effective VAT rate of 20 percent
The 20 percent effective rate is a result of combining the VAT rate of 15 percent, the National Health Insurance Levy (NHIL) of 2.5 percent, and the Ghana Education Trust Fund (GETFund) Levy of 2.5 percent.
In the VAT Flat Rate Scheme, these levies were often treated as separate, non-deductible costs, especially for those on the now-abolished Scheme. Under the new Act, the NHIL and GETFund levies are recoupled with the main VAT, allowing registered businesses to claim input tax credits on them, which was not previously possible. The COVID-19 Health Recovery Levy, as a component, has been abolished.
The requirement to charge this rate, which began on January 1, 2026, until the end of the first quarter of implementation, is an interim measure agreed upon by the Ghana Revenue Authority and GUTA to facilitate a smooth transition to the new system. During this period, a Joint Technical Team will address practical challenges traders face regarding record-keeping and input tax claims.
The Joint Technical Team
GRA and GUTA at the consultative meeting also established a Joint Technical Team, which comprises representatives of GUTA and GRA. The team will receive feedback on the new VAT Reform rollout from the eligible taxpayers, including GUTA members, and address them to ensure payment and compliance.
The team will be responsible for addressing sector-specific challenges, including requirements for VAT record keeping, input VAT claims, and VAT calculation. The Joint Technical Team will subsequently make recommendations for further reviews.
GRA Assures of Continuous Nationwide Education
Since the implementation of the new VAT Reform, officials met with businesses to provide clarity on challenges they may be facing during the transitional period. The GRA also uses the opportunity to note challenges that come with the new system for improved service.
The meeting concluded with the assurance from GRA to intensify nationwide education and sensitization programs for businesses and all taxpayers. These efforts are designed to guide traders through the transitional arrangements and ensure obedience with the new VAT regime.
The GRA has reassured traders who formally operated under the VAT Flat Rate Scheme of its full support and its intention to adopt a collaborative approach to guarantee a smooth transition.
GUTA also encouraged its members to comply with the new VAT law to avoid penalties and problems with the law.
The GRA and GUTA reaffirmed their commitment to ongoing dialogue, as well as prioritizing the interest of traders, consumers, and national development.
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