GRA Introduces Automated VAT System for Digital Services, Says No New Tax

The Ghana Revenue Authority (GRA) has clarified that its newly introduced automated system for collecting Value Added Tax (VAT) on digital services is not a new tax measure but an initiative to improve compliance and ensure the effective collection of existing taxes.

Speaking in an interview on Joy FM on Wednesday, October 14, 2026, GRA Commissioner-General Anthony Sarpong explained that VAT on digital services provided by foreign companies to consumers in Ghana has been applicable since 2013.

He dismissed concerns that the new system would impose an additional tax on users of digital platforms, stressing that the initiative was designed to improve the collection of taxes already in place.

“It’s not a new tax, it’s not a new imposition of tax,” he stated.

Mr Sarpong mentioned platforms such as Netflix, Google and Amazon, explaining that VAT is already factored into the prices consumers pay for their services. However, he noted that the GRA had encountered difficulties monitoring transaction volumes and confirming whether foreign digital service providers were remitting the correct amounts of tax.

According to him, the automated system would address these challenges by separating the tax component from customer payments and ensuring that the revenue due is transferred directly to the government.

“At the point of payment, the system will take the 20 and give it to the Government of Ghana, which is the tax component, and remit the 100 ordinarily to Netflix,” he explained.

The Commissioner-General emphasised that the initiative was not intended to cause an arbitrary 20 per cent increase in subscription fees. Instead, it would ensure that the government receives the VAT already payable on digital services consumed in Ghana.

He further revealed that the system would improve compliance among approximately 92 established corporate remitters while extending the tax net to about 100 additional digital platforms identified by the authority.

On why the initiative currently targets digital services rather than physical goods, Mr Sarpong explained that imported products are already subject to established customs procedures at Ghana’s airports and seaports, where the relevant duties and taxes are assessed and collected.

He added that the automated system would accommodate various digital payment channels, including bank cards, mobile money and standing orders, allowing the tax component to be identified and separated during transactions.

“So any other digital payment platform you are using, at the point of payment, the system will split the value into two,” he said.

Mr Sarpong reiterated that the system was intended to strengthen tax compliance among foreign digital service providers, improve revenue collection and ensure that the government receives the VAT due without introducing a new tax on consumers.