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Value Added Tax Act, 2025 (Act 1151)

From The Legal and Regulatory Framework of Ghana
Revision as of 16:49, 15 March 2026 by Oblitey (talk | contribs) (Created page with "==ARRANGEMENT OF SECTIONS== ''Value Added Tax'' :1. Imposition of Value Added Tax :2. Persons liable to pay the Tax :3. Rate of the Tax ''Taxable Person and Taxable Activity'' :4. Taxable person :5. Taxable activity ''Registration'' :6. Persons required to register :7. Exceptions regarding thresholds and period for registration :8. Period for becoming a taxable person :9. Notice of registration :10. Certificate of registration :11. Notice of registration or cancellatio...")
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ARRANGEMENT OF SECTIONS

Value Added Tax

1. Imposition of Value Added Tax
2. Persons liable to pay the Tax
3. Rate of the Tax

Taxable Person and Taxable Activity

4. Taxable person
5. Taxable activity

Registration

6. Persons required to register
7. Exceptions regarding thresholds and period for registration
8. Period for becoming a taxable person
9. Notice of registration
10. Certificate of registration
11. Notice of registration or cancellation in respect of turnover
12. Designation of taxable persons in respect of groups and distinct divisions
13. Voluntary registration
14. Compulsory registration
15. Non-resident persons who provide telecommunication services or electronic commerce
16. Sanctions for failure to register
17. Upfront payment by unregistered importer
18. Register of taxable persons
19. Notice of change in business
20. Cancellation of registration

Supply of Goods and Services

21. Supply of goods
22. Supply of services

Special Supplies

23. Repossession of goods as supply of goods
24. Lay-away agreement as supply of services
25. Separate supply
26. Activities that do not constitute supply of goods or services
27. Effect of denial of input tax
28. Payment of deposit and receipt of claim as supply of goods or services
29. Disposition of taxable activity
30. Phone cards, prepaid airtime and other prepayments as supply of services
31. Mixed supplies
32. Supply by agent or auctioneer

Taxable Supplies

33. Taxable supply
34. Payment of Tax on importation of goods or services
35. Exempt supply
36. Zero-rated supply
37. Exempt import
38. Relief from Tax

Time and Place of Supply

39. Time of supply
40. Time of import
41. Place of supply of goods
42. Place of supply of services

Tax Invoice and Sales Receipt

43. Issue of tax invoice or sales receipt

Taxable Value

44. Value of taxable supply
45. Taxable value for determining Tax on imported goods and services
46. Adjustments
47. Adjustments on account of bad debts

Calculation of Tax Payable and Refunds

48. Tax payable for tax period
49. Deductible input tax
50. Qualification for deductible input tax
51. Other conditions for deductible input tax
52. Deductible input tax for mixed taxable and exempt supply
53. Refund or credit for excess tax paid
54. Time for payment of refund

Withholding of Value Added Tax

55. Appointment of Value Added Tax Withholding Agent
56. Duties of a Value Added Tax Withholding Agent
57. Scope of Value Added Tax Withholding Agent
58. Exemption from withholding Tax

Tax Returns, Records and Assessment

59. Submission of tax return
60. Date of payment of Tax
61. Payment of Tax on import of services
62. Assessment of Tax
63. Correction of tax return

Recovery of Tax Due, Interest and Other Liabilities

64. Recovery of tax due
65. Recovery from recipient of a supply
66. Failure to issue tax invoice
67. Evasion of Tax

Miscellaneous Provisions

68. Tax-inclusive pricing
69. Declaration of representative
70. Person acting in a representative capacity
71. Regulations
72. Interpretation
73. Repeals and savings
74. Transitional provisions
75. Commencement

SCHEDULES

FIRST SCHEDULE - Exempt Supplies
SECOND SCHEDULE - Zero-Rated Supplies
THIRD SCHEDULE - Relief Supplies
FOURTH SCHEDULE - Tax Credit Note and Tax Debit Note
FIFTH SCHEDULE - Apportionment of Input Tax

LONG TITLE

AN ACT to revise and consolidate the law relating to the imposition of the Value Added Tax and to provide for related matters.

DATE OF ASSENT

9th December, 2025.

ACT

Value Added Tax

1. Imposition of Value Added Tax

(1) There is imposed by this Act, a Value Added Tax to be charged on the

(a) supply of goods or services made in the country, other than exempt goods or services; and
(b) import of goods or services, other than exempt import.

(2) Unless otherwise provided in this Act, the Tax shall be charged on the supply of goods or services where the supply is

(a) a taxable supply; and
(b) made by a taxable person in the course of the taxable activity of that person.

(3) The Tax is chargeable and payable on the importation of goods.

(4) For the purposes of subsection (3), the laws and regulations applicable to the collection of customs duties and other taxes on the importation of goods, including the requirement to submit an import declaration, apply with the modifications specified in this Act and Regulations made under this Act.

(5) The Tax is chargeable on a supply of goods made by

(a) a diplomatic mission,
(b) an international agency,
(c) an organisation,
(d) a Government agency, or
(e) any other person who has obtained a relief from or a refund of the Tax on the importation or domestic acquisition of the goods.


2. Persons liable to pay the Tax

Except as otherwise provided in this Act, the Tax shall be paid, in the case of

(a) a taxable supply, by the taxable person who makes the supply;
(b) an import of goods, by the importer;
(c) an import of services, by the recipient of the service; or
(d) a non-resident person required to register under section 15, by the non-resident person.


3. Rate of the Tax

Except as otherwise provided in this Act, the rate of the Tax is fifteen per cent and is calculated on the value of the

(a) taxable supply of the goods or services; or
(b) import.


Taxable Person and Taxable Activity

4. Taxable person

(1) A taxable person is a person who is

(a) registered for the purposes of this Act; or
(b) required to register under sections 6 to 17.

(2) Subject to sections 6 to 9 and 11 to 16, the effective date of registration of a person as a taxable person is the date specified in the certificate of registration issued by the Commissioner-General under section 10.


5. Taxable activity

(1) For the purposes of this Act, a taxable activity means an activity which

(a) is carried on by a person in the country or partly in the country, whether or not for a pecuniary profit; and
(b) involves or is intended to involve, in whole or in part, the supply of goods or services to another person for consideration.

(2) Without limiting subsection (1), a taxable activity includes

(a) an activity of a local authority or unincorporated association or body that involves, in whole or in part, the supply of goods or services to another person for

consideration;

(b) the processing of data or supply of information or similar service;
(c) the supply of staff;
(d) the giving of gifts;
(e) the loaning of goods;
(f) the leasing or letting of goods on hire;
(g) the appropriation of goods or services for personal use or consumption by the taxable person or by any other person;
(h) the sale, transfer, assignment or licensing of a patent, copyright, trademark, computer software or any other proprietary information;
(i) the exploration of natural resources;
(j) the export of a traditional product, other than cocoa beans, coffee and shea butter; and
(k) the export of a non-traditional product.

(3) A supply is considered to be a supply for consideration where the supplier is directly or indirectly entitled to receive payment wholly or partly in money or in kind from the person to whom the supply is made or from any other person and includes a supply

(a) made between related persons for no consideration;
(b) of goods for use only as a trade sample; or
(c) referred to in section 23 to 25.

(4) A supply is part of a taxable activity of a person if the supply is

(a) made by a person as part of, or
(b) incidental to

an economic activity the person conducts.

(5) Where an owner of goods enters into a contract with another person to process or treat the goods of the owner, the delivery of the goods to the owner or the agent of the owner is considered a supply of goods by the person who processes or treats the goods.


Registration

6. Persons required to register

(1) Except as otherwise provided in this Act, a person who engages in a taxable activity and is not registered for the Tax shall, in the case of

(a) a taxable supply of services, register within thirty days after engaging in the taxable activity, unless otherwise directed by the Commissioner-General; and
(b) a taxable supply of goods, register where,
(i) at the end of any period of twelve months or less, the person has made, during that period, taxable supplies exceeding seven hundred and fifty thousand Ghana Cedis; or
(ii) at the end of any month, there are reasonable grounds to expect that the person will make taxable supplies exceeding seven hundred and fifty thousand Ghana Cedis during the following period of twelve months or less.

(2) Despite paragraph (b) of subsection (1), a person shall register if

(a) at the end of any period of three months, the person has made, during that period, taxable supplies exceeding one hundred and eighty-seven thousand five hundred Ghana Cedis; and
(b) there are reasonable grounds to expect that the total value of taxable supplies made by that person during the period of three months and the nine months following the period of three months will exceed seven hundred and fifty thousand Ghana Cedis.

(3) For the purposes of determining the thresholds under paragraph (b) of subsection (1) and subsection (2), the Commissioner-General may have regard to the value of taxable supplies made by another person, if

(a) that other person is a related person; or
(b) the taxable person and that other person are acting in concert in making the taxable supplies.

(4) A person who is required to register under this Act shall apply to register for the Tax in the form and manner prescribed by the Commissioner-General.

(5) A person who is required to register under subsection (1) shall file the application for registration within thirty days after the end of

(a) the period under subparagraph (i) of paragraph (b) of subsection (l); or
(b) the month under subparagraph (ii) of paragraph (b) of subsection (1).

(6) A person who is required to register under paragraph (a) of subsection (2) shall file the application for registration within thirty days after the period of three months.


7. Exceptions regarding thresholds and period for registration

(1) Despite the period of registration specified in paragraph (a) of subsection (1) of section 6, a promoter of public entertainment shall, not less than forty-eight hours before the commencement of the public entertainment, apply for registration.

(2) Despite the threshold rules in paragraph (b) of subsection (1) of section 6, an auctioneer that carries on a taxable activity shall, within thirty days after the date on which the person becomes an auctioneer, apply for registration.


8. Period for becoming a taxable person

A person who is

(a) not registered for the Tax, and
(b) required to register under this Act,

is a taxable person from the beginning of the tax period that immediately follows the tax period in which the requirement to register arose.


9. Notice of registration

(1) The Commissioner-General shall, within thirty days after the receipt of an application for registration, give notice to the applicant of the decision to register or not register the applicant.

(2) Where the Commissioner-General fails to give notice within thirty days after the receipt of an application for registration, the Commissioner-General is considered to have registered the applicant.

(3) Despite subsection (2), where the Commissioner-General is satisfied that the person is not eligible for registration, the Commissioner-General shall give notice to the applicant of the decision not to register the applicant.

(4) Where, within the period of thirty days specified under subsection (1), the Commissioner-General requests for additional information from the applicant in order to determine if the applicant is eligible to apply for registration,

(a) the period of thirty days shall cease to run; and
(b) the Commissioner-General shall, within fourteen days after the receipt of the required information in the form prescribed by the Commissioner-General, give notice of the decision to register or not register the applicant.


10. Certificate of registration

(1) The Commissioner-General shall issue a certificate of registration to each person registered for the Tax.

(2) A person registered for the Tax shall display the certificate of registration at

(a) the principal place of business of the person; and
(b) every other location where the person engages in a taxable activity.


11. Notice of registration or cancellation in respect of turnover

(1) The Commissioner-General may give notice in writing to a person who has, within the period specified in the notice, made taxable supplies

(a) in excess of a turnover threshold, or
(b) below a turnover threshold,

specified in subparagraph (i) or (ii) of paragraph (b) of subsection (1) of section 6 and is registrable or not registrable as a taxable person.

(2) The Commissioner-General shall, in accordance with the determination under subsection (1), register or cancel the registration of the person.


12. Designation of taxable persons in respect of groups and distinct divisions

(1) A group of taxable persons may, with the approval of the Commissioner-General, be treated as one designated taxable person for the purposes of the Tax.

(2) Each member of the group referred to in subsection (1) is jointly and severally liable for any liability or contravention under this Act and Regulations made under this Act.

(3) A taxable person whose taxable activity is structured into distinct divisions may apply to the Commissioner-General to register one or more of the divisions for the Tax.


13. Voluntary registration

(1) A person who is not required to register may voluntarily apply to be registered by the Commissioner-General.

(2) The Commissioner-General shall not register a person who applies to register as a taxable person under subsection (1), if the Commissioner-General

(a) is satisfied that the person has no fixed place of abode or business; or
(b) has reasonable grounds to believe that the person may not
(i) keep proper accounting records related to any business activity carried on by that person;
(ii) submit regular and reliable tax returns as required by or under this Act; or
(iii) be a fit and proper person to be registered.


14. Compulsory registration

Where

(a) a person required to register under this Act fails to apply for registration, or
(b) the Commissioner-General considers it necessary to register a person for the Tax

the Commissioner-General shall register that person.


15. Non-resident persons who provide telecommunication services or electronic commerce

(1) A non-resident person who provides telecommunication services or electronic commerce to a person for use or enjoyment in the country, other than through a Tax registered agent, shall register if that non-resident person makes a taxable supply.

(2) A person who contravenes subsection (1) is, in addition to any other penalty imposed under this Act or Regulations made under this Act, liable to a restriction of access to the country until the person registers in accordance with subsection (1).

(3) Despite any provision of this Act or any other tax law, the Commissioner-General may, for the purposes of this section, appoint a person to collect the Tax and a levy on a supply made by a taxable person.

(4) For the purposes of this section,

(a) "electronic commerce" includes a business transaction, including a digital service, that takes place through the electronic transmission of data over a communication network such as the internet;
(b) "Tax registered agent" means a representative of a non-resident person who provides telecommunication services or electronic commerce in the country who is registered for the Tax; and
(c) "telecommunication services" include services that relate to
(i) the transmission, emission or reception of signals, writings, images and sounds of information of any nature by wire, radio, optical or other electromagnetic systems, including the provision of access, transmission, emission or reception; and
(ii) the broadcast of political, social, cultural, artistic, sporting, scientific or entertainment events.


16. Sanctions for failure to register

A person who fails to apply for registration is liable to a penalty of not less than three times the amount of the Tax on taxable supplies payable from the time the person is required to apply for registration until the person applies for registration with the Commissioner-General.


17. Upfront payment by unregistered importer

(1) A person who

(a) imports taxable goods, and
(b) is not registered for the Tax

is, in addition to the penalty provided in section 16, liable to make an upfront payment of twenty per cent of the customs value of the taxable goods.

(2) A person may be credited with the upfront payment made under subsection (1) after the person registers and files a return for the relevant period.


18. Register of taxable persons

The Commissioner-General shall keep a register of taxable persons that contains the particulars of the taxable persons as specified by the Commissioner-General.


19. Notice of change in business

(1) A taxable person shall give notice m writing to the Commissioner-General

(a) if the taxable person
(i) ceases to operate,
(ii) sells, or
(iii) relocates

the business engaged in the taxable activity;

(b) if there is a change in the ownership of the business engaged in the taxable activity; or
(c) of a change in the
(i) name or address of the taxable person;
(ii) circumstances which disqualify the taxable person for registration; or
(iii) taxable activity or the nature of taxable supply being made.

(2) The notice under subsection (1) shall be given within fourteen days after the cessation, sale, relocation, change of ownership or other change as the case may be.

(3) Where a person ceases to carry on a taxable activity in relation to which the registration was made, the notice under subsection (1) shall

(a) be made within fourteen days after the date of the cessation; and
(b) state whether or not the person intends to carry on the taxable activity within twelve months from the date of cessation.

(4) A taxable person who commences the sale of a business as a going concern shall give notice in writing of the commencement of sale to the Commissioner-General not less than fourteen days before the

(a) sale closes,
(b) purchaser acquires a legal interest in the assets to be acquired, or
(c) assets of the going concern are transferred,

whichever date is earliest.


20. Cancellation of registration

20. (1) The Commissioner-General shall cancel the registration of a taxable person where the Commissioner-General is satisfied that the taxable person

(a) no longer exists;
(b) is not carrying on a taxable activity;
(c) is not required or entitled to apply for registration;
(d) has not kept proper accounting records related to a business

activity carried on by that person; or

(e) has not submitted regular and reliable tax returns required

under this Act. (2) A cancellation takes effect from

(a) the end of the tax period in which the registration is

cancelled; or

(b) any other date determined by the Commissioner-General.

(3) Subject to subsection ( 4), a taxable person whose registration is cancelled is considered to have made a taxable supply of the goods on hand, including capital goods, at the time the registration is cancelled. (4) For the purposes of subsection (3), there is no taxable supply with respect to specific goods on hand if the taxable person was denied an input tax deduction on the acquisition of the goods. (5) The obligations and liabilities of a person in respect of anything done or omitted to be done by that person as a taxable person under this Act or Regulations made under this Act, including the requirement to submit returns under section 59, is not affected by the cancellation of the registration of that person. (6) The Commissioner-General shall give notice in writing of the decision to cancel or refuse to cancel a registration under this section to a person within thirty days after

(a) making the decision; or
(b) the receipt of the application.

(7) Where the Commissioner-General cancels the registration of a person,

(a) the person shall return the certificate of registration and

any unused tax invoice to the Commissioner-General; and

(b) the Commissioner-General shall remove the particulars of

that person from the register. (8) A person registered for the Tax pursuant to subsection (1) of section 13 may apply for cancellation of the registration only after the expiration of two years after the date the registration took effect. (9) Subject to subsection (8), a taxable person who

(a) ceases to carry on the business in relation to which the

registration was made, and

(b} is not engaged in any other taxable activity,

shall apply in writing to the Commissioner-General for cancellation of the registration within thirty days after the cessation of the business. Supply of Goods and Services

21. Supply of goods

21. ( 1) Except as otherwise provided in this Act and Regulations made under this Act, "supply of goods" means

(a} an arrangement under which an owner of goods parts with

possession of the goods by way of sale, barter, lease, transfer, exchange, gift or any similar disposition; or

(b} a supply of any form of power, heat, refrigeration or

ventilation. (2) For the purposes of subsection (1), a supply of goods does not include the supply of money. (3) The disposal of

(a} a taxable activity, or
(b} part of a taxable activity that is capable of being operated
  1. VALUE!

1s a supply of goods made in the course or furtherance of the taxable activity. (4) For the purposes of subsection (3), a taxable activity or part of a taxable activity that is capable of being operated separately as a going concern is disposed of where the

(a} goods or services necessary for the continued operation of

that taxable activity or that part of the taxable activity are supplied to the transferee; and

(b} transferor carries on or is carrying on that taxable activity

or that part of a taxable activity up to the time of the transfer of the taxable activity to the transferee. (5) A supply of goods in exchange for goods or services is a supply of goods. (6) Subject to subsection (2) of section 26 and section 27, the application by a taxable person of goods acquired for use in a taxable activity to a different use, including the provision of goods to an employee for personal use, is a supply of the goods by the taxable person in the course or furtherance of that taxable activity.

22. Supply of services

22. ( 1) Except as otherwise provided in this Act and Regulations made under this Act, "supply of services" means a supply which is

(a) not a supply of goods or money; and
(b) in the nature of
(i) the performance of services for another person;
(ii) the grant, assignment or surrender of any right;
(iii) making available a facility or advantage; or
(iv) tolerating a situation or refraining from doing an

activity. (2) A supply of services in exchange for services or goods is a supply of services. (3) Subject to subsection (1) of section 26 and section 27, the application by a taxable person of services acquired for use in a taxable activity to a different use, including the provision of services to an employee for personal use, is a supply of the services by the taxable person in the course or furtherance of that taxable activity. Special Supplies

23. Repossession of goods as supply of goods

23. (1) Where goods are repossessed under a credit agreement, the repossession is a supply of the goods by the debtor under the credit agreement to the person who exercises the right of repossession. (2) Where the debtor is a registered person, the supply is made in the course or furtherance of the taxable activity of the debtor, unless the goods did not form part of the assets held or used by the debtor in connection with that taxable activity.

24. Lay-away agreement as supply of services

24. Where a lay-away agreement is terminated or cancelled and the seller

(a) retains an amount paid by the purchaser, or
(b) recovers an amount the purchaser owes under the

agreement, the cancellation or termination is a supply of services by the seller in respect of the agreement.

25. Separate supply

25. Where a supply of goods or services consists of

(a) a supply that is charged with the Tax at a positive rate, and
(b) a supply of goods charged with the Tax at a rate of zero

per cent, or an exempt supply, each part of the supply of goods or services shall be treated as a separate supply of goods or services if each part is reasonably capable of being supplied separately.

26. Activities that do not constitute supply of goods or services

26. (1) A supply of services by an employee to an employer by reason of the employment of that employee is not a supply of services for the purposes of the Tax. (2) The transfer of goods to a person acting in a representative capacity to the transferor is not a supply of goods.

27. Effect of denial of input tax

27. Except as otherwise provided in this Act, where

(a) a taxable person supplies goods or services, and
(b) a deduction for input tax paid on the acquisition of the

goods or services is denied, the supply of the goods or services by the taxable person is a supply of goods or services other than in the course or furtherance of a taxable activity.

28. Payment of deposit and receipt of claim as supply of goods or services

28. (1) The payment of a sum of money as a deposit, other than on a returnable container, is treated as a supply when the deposit is forfeited. (2) For the purposes of sections 21 to 27, a deposit is an amount of money or property that is ( a) received from a prospective purchaser to secure performance of the agreement that is the subject of the deposit;

(b) to be applied to the purchase price or returned if the

depositor performs; and

(c) ordinarily forfeited if the purchaser defaults.

(3) Where a taxable person

(a) receives a payment of a claim, or
(b) is otherwise indemnified under a non-life insurance contract

for a loss incurred in connection with the conduct of a taxable activity, the receipt of the payment or indemnity is a supply of services by the taxable person in the course or furtherance of a taxable activity. (4) Subsection (3) applies only if the supply of the non-life insurance contract is taxable under section I, other than a supply charged with the Tax at a rate of zero per cent under section 36.

29. Disposition of taxable activity

29. (1) Subject to subsection (2), where

(a) the disposition of a taxable activity, including a disposition

of a part of a taxable activity capable of being operated separately, by a taxable person is a supply of goods under subsection (3) of section 21,

(b) the supply was charged with the Tax at the rate of zero per

cent in accordance with the Second Schedule, and

(c) the goods and services comprising the taxable activity were

acquired by the recipient wholly or partly for a purpose other than for consumption, use, or supply in the course of making taxable supplies, the acquisition of the taxable activity is a supply by the recipient in the course or furtherance of a taxable activity carried on by the recipient, to the extent that the goods and services comprising the taxable activity were acquired for a purpose other than consumption, use or supply in the course of making taxable supplies. (2) Subsection (1) does not apply where the part of the taxable activity referred to in paragraph (c) of subsection (1) is less than ten per cent of the total taxable activity acquired. Phone cards, prepaid airtime and other prepayments as supply of

30. services

30. (1) For the purposes of the Tax,

(a) the issuance of a phone card, the prov1s1on of prepaid

airtime or prepayment on a mobile or fixed electronic device, .or

(b) any other similar scheme of advance payment for the supply

of goods or services is a supply of services. (2) Subject to subsection (1), where a right to receive goods or services for a monetary value stated on a

(a) token,
(b) voucher,
(c) gift certificate, or
(d) stamp other than a postage stamp authorised under the

20. Postal and Courier Services Regulatory Commission Act,

2003 (Act 649) is granted for a consideration or money, the issue of the token, voucher, gift certificate or stamp is not a supply except to the extent, if any, that the consideration exceeds the monetary value.

31. Mixed supplies

31. (1) A supply of

(a) services incidental to a supply of goods is part of the supply

of goods;

(b) goods incidental to a supply of services is part of the supply

of services; and

(c) services incidental to an import of goods is part of the

import of the goods. (2) Despite paragraphs (a) and (c) of subsection (1), a supply of real property does not include the

(a) supply of services, or
(b) import of services

incidental to the supply of real property.

32. Supply by agent or auctioneer

32. (1) A supply of goods or services made by an agent on behalf of the principal is a supply by the principal. (2) Subsection (1) does not apply to the supply of the services of an agent to the principal. (3) A supply of goods by auction is, for the purposes of this Act, considered a supply of goods for consideration by the auctioneer in the course or in furtherance of a taxable activity carried on by the auctioneer. Taxable Supplies

33. Taxable supply

33. (1) Except as otherwise provided in this Act or Regulations made under this Act, a taxable supply is a supply of goods or services for consideration made by a taxable person in the course of, or as part of a taxable activity carried on by the taxable person. (2) Subsection (1) does not apply to a supply of goods or services exempted from the Tax under section 35.

34. Payment of Tax on importation of goods or services

34. (1) Except as otherwise provided in this Act or Regulations made under this Act,

(a) on the import of goods,
(i) the Commissioner-General shall make arrangements

to collect, at the time of import, the Tax due under this Act; and

(ii) the provisions of the Customs Act, 2015 (Act 891)

relating to the import, transit, coastwise carriage, clearance of goods and payment and recovery of duty apply, so far as is relevant, to the Tax charged under this Act or Regulations made under this Act, with the exceptions, modifications and adaptations that the Minister may, by Regulations, prescribe; and

(b) on the import of services, the Tax is payable as provided

under section 61. (2) The Commissioner-General shall make arrangements for the collection of the Tax on an import of goods through the postal services.

35. Exempt supply

35. (1) The supply of goods or services specified in the First Schedule is an exempt supply and not subject to the Tax. (2) A supply of goods or services is not an exempt supply if the supply is subject to the Tax at the rate of zero per cent in accordance with section 36.

36. Zero-rated supply

36. (I) A taxable supply is taxable at a rate of zero per cent if the supply is specified in the Second Schedule. (2) Where a taxable person has applied the rate of zero per cent to a supply under this section, the taxable person shall obtain and retain documentary proof that

(a) is acceptable to the Commissioner-General; and
(b) substantiates the right of the person to apply the rate of

zero per cent to the supply.

37. Exempt import

37. An import of goods is an exempt import if the goods are

(a) exempt under the First Schedule; or
(b) classified as an exempt import in conformity with Part C

of the Third Schedule of the Harmonised Commodity Description and Coding System also known as the Harmonised System.

38. Relief from Tax

38. (1) The individuals, organisations and matters specified in the Third Schedule are entitled to relief from the Tax on

(a) taxable imports of goods; or
(b) taxable supplies of goods acquired in the country.

(2) The Minister may, by legislative instrument, make Regulations to specify the method by which the persons entitled to relief from the Tax shall obtain the relief, subject to restrictions that the Minister considers necessary. (3) Where the relief provided for under this section is by refund, a claim for a refund of the Tax shall be

(a) made in the form and at the time the Minister may

prescribe; and

(b) accompanied with proof of payment of the Tax.

(4) For the purposes of subsection (I), the relief does not apply to the

(a) raw materials,
(b) parts, or
(c) services

that are or may become components of the goods in respect of which the relief is granted. (5) Subsection ( 4) does not apply in the case ofrelief granted under paragraph 8 of the Third Schedule. Time and Place of Supply

39. Time of supply

39. (1) Except as otherwise provided in this Act or Regulations made under this Act, a supply of goods or services occurs

(a) where the goods or services are applied to own use, on the

date the goods or services are first applied to own use;

(b) where the goods or services are supplied by way of gift, on

the date on which

(i) ownership in the goods passes; or
(ii) the performance of the service is completed;
(c) in any other case, on the earliest of the dates on which
(i) the goods are removed from the premises of the

taxable person, or from any other premises where the goods are under the control of the taxable person;

(ii) the goods are made available to the person to whom

the goods are supplied;

(iii) the performance of the service is completed;
(iv) receipt of payment occurs; or
(v) a tax invoice or sales receipt is issued.

(2) Where under subparagraphs (iv) and (v) of paragraph (c} of subsection (1),

(a} payment is received, or
(b} a tax invoice or sales receipt is issued

for part of the supply, this section applies only to the part of the supply represented by the payment or the tax invoice or sales receipt. (3) Where metered supplies are made on a continuous basis, the time of supply is at each meter reading. ( 4) The supply of goods under a hire purchase agreement or a finance lease occurs on the date on which the goods are made available under the agreement or lease. (5) Where goods are supplied under a rental agreement or goods or services are supplied under an agreement or law which provides for periodic payments,

(a} the goods or services shall be considered as successively

supplied for successive parts of the period of the agreement or as determined by that law; and

(b} each successive supply occurs on the date on which
(i) payment is due or received, or
(ii) the invoice is issued, whichever date is earlier.

(6) For the purposes of this section, where two or more payments are made or are to be made for a supply of goods or services, other than a supply to which subsection (4) or (5) applies, each payment shall be considered as made for a separate supply, to the extent of the amount of the payment, on the earlier of the dates that the payment is due or received. (7) In this section, "rental agreement" means an agreement for the letting of goods other than a hire purchase agreement or a finance lease. (8) Where the supply of goods or services is incidental to another supply, the time of supply of the incidental supply shall be considered the same as the time of supply for the main goods or services. (9) A supply of goods in accordance with a lay-away agreement occurs when the goods are delivered to the purchaser.

23. (10) A supply of goods that have been repossessed under section

23 occurs

(a) when the goods are repossessed; or
(b) where the debtor may, under a law, be reinstated with the

rights and obligations of the debtor under the credit agreement, the day after the last day of any period during which the debtor may, under that law, be so reinstated. (11) A supply of goods made through a cash-operated or tokenoperated machine occurs when the supplier or the agent of the supplier withdraws the consideration from the cash-operated or token-operated machine. (12) The forfeiture of a deposit, other than on a returnable container, occurs when the deposit is forfeited. (13) Where the issuance of a token, voucher, gift certificate, or stamp constitutes a supply under subsection (2) of section 30, the supply occurs when the token, voucher, gift certificate or stamp is issued. (14) The Minister may, by legislative instrument, make Regulations to prescribe rules to determine the time of a supply of particular goods or services.

40. Time of import

40. (1) An import of goods occurs when the goods are entered for the purposes of section 48 of the Customs Act, 2015 (Act 891). (2) An import of services occurs at the time determined by the application of section 39 to the import on the basis that the import is a supply of services.

41. Place of supply of goods

41. (1) Except as otherwise provided in this Act, the place of a supply of goods is

(a) the place where the goods are delivered or made available

by the supplier; or

(b) if the delivery or the making available of the goods involves

the transportation of the goods, the place where the goods are when the transportation commences. (2) A supply of thermal or electrical energy, heating, gas, refrigeration, air conditioning or water takes place where the supply is received.

42. Place of supply of services

42. (1) Subject to this section and Regulations made under this Act, a supply of services takes place at the location of the place of business of the supplier from which the services are supplied. (2) The supply of the following services takes place where the recipient uses the service:

(a) a transfer or assignment of a copyright, patent, licence,

trademark, or similar right;

(b) the service of a consultant, engineer, lawyer, architect,

accountant or any other professional;

(c) the processing of data or supplying information, or any

similar service;

(d) an advertising service;
(e) the obligation to refrain from pursuing or exercising taxable

activity, employment, or a right described in this subsection;

(I) the supply of personnel;
(g) the service of an agent in procuring for the agent's principal,

a service described in this subsection; or

(h) the leasing of tangible personal property other than

transport property. (3) Unless the service is described in subsection (2),

(a) the supply of cultural, artistic, sporting, educational, or

similar activities takes place where the service is physically carried out;

(b) the supply of services connected with tangible personal

property takes place where the service is physically carried out;

(c) the supply of services connected with real property takes

place where the property is located; and ( d) a supply of services incidental to transport takes place where the transportation occurs. ( 4) A service supplied from a place ofbusiness in the country which would be treated as supplied outside the country under subsections (2) and (3) is considered as exported from the country. (5) The place of supply of a right to a service is the same as the place for the supply of the service made by the supplier of the right to the recipient of the right, whether or not the right is exercised. (6) For the purposes of subsection (5), a right to a service includes any right, option or priority with respect to the supply of a service and an interest derived from a right to a service. (7) In the case of a telecommunications service described in paragraph (c} of subsection (4) of section 15, the place of supply is

(a} the place where the facility or instrument for the emission,

transmission or reception of the service in respect of which the invoice for the supply is issued or is to be issued, is ordinarily situated; or

(b} the place where the effective use and enjoyment occurs.

(8) In the case of electronic commerce under paragraph (a} of subsection (4) of section 15 other than a digital service, the place of supply is the place where the effective use or enjoyment occurs. (9) In the case of a digital service, the place of supply is the place where the service is supplied, used or enjoyed in the country, if any two of the following circumstances exist:

(a} the recipient of the service is a resident person;
(b} the payment for the supply of the digital service, including

by mobile money, credit card, debit card or bank account, originates from

(i) a payment platform in the country; or
(ii) a registered or authorised financial institution as

provided for under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930);

(c} the recipient of the supply of a digital service has either a

business, residential or postal address, internet proxy address or phone number in the country; and

(d) the service is received on a terminal located in the country,

including a computer, tablet, mobile phone or similar device. (10) The place of supply of a recharge card or other similar mode of recharging is the place where the product is supplied. (11) The Commissioner-General shall develop guidelines on the activities that amount to the use of a service by a recipient under subsection (2). Tax Invoice and Sales Receipt

43. Issue of tax invoice or sales receipt

43. (1) Except as otherwise provided in this Act, a taxable person shall, on making a taxable supply of goods or services, issue to the recipient, a tax invoice in the form and with the particulars prescribed by the Commissioner-General. (2) A taxable person shall

(a) issue a tax invoice through a Certified Invoicing System; and
(b) ensure that the Certified Invoicing System of the taxable

person is integrated into the invoicing system of the Commissioner-General. (3) The Commissioner-General may access the Certified Invoicing System of a taxable person to ensure compliance with this Act. ( 4) A taxable person shall, on issuing a tax invoice, retain a copy of the tax invoice in a sequential identifying number order. (5) The Commissioner-General may authorise a taxable person who makes a taxable supply to issue a sales receipt instead of a tax invoice in accordance with the prescribed conditions and procedures. (6) A taxable person shall not provide a tax invoice or sales receipt in circumstances other than the circumstances specified under this section. (7) Subject to subsection (6), a taxable person shall issue only one tax invoice or sales receipt for each taxable supply. (8) Where a recipient who is a taxable person has not received a tax invoice as required under subsection (1), the recipient may, within forty-eight hours after the date of the supply, obtain a copy of the invoice from the Certified Invoicing System of the taxable person. (9) A person satisfies the requirement under subsections (I) and (5), if that person issues a fiscal receipt in accordance with the Taxation

(Use of Fiscal Electronic Device) Act, 2018 (Act 966).

(10) Where the Certified Invoicing System of a taxable person goes offiine or is inaccessible by the Commissioner-General, the taxable person shall, within twenty-four hours,

(a} inform the Commissioner-General; and
(b} ensure that the Certified Invoicing System of the taxable

person is restored online and accessible by the Commissioner-General. ( 11) Where a recipient who is a taxable person has lost a tax invoice for a taxable supply, the recipient may obtain a copy of the tax invoice from the invoicing system of the Commissioner-General. (12) The invoice number of each tax invoice or sales receipt issued to a recipient may be used by that recipient to enter a reward scheme organised by the Ghana Revenue Authority. (13) Except as otherwise directed by the Commissioner-General, a taxable person shall, on the coming into force of this Act, comply with the provisions of this section. Taxable Value

44. Value of taxable supply

44. (I) The value of a taxable supply is,

(a} where the supply is for monetary consideration, the amount

of the consideration and all duties and taxes, excluding

(i) the Tax;
(ii) the Ghana Education Trust Fund Levy;
(iii) the National Health Insurance Levy; and
(iv) the levy imposed under paragraph (b} of section 23

of the Tourism Act, 2011 (Act 817); and

(b} where the supply is not for monetary consideration or is

only partly for monetary consideration, the open market value of a similar supply, excluding

(i) the Tax;
(ii) the Ghana Education Trust Fund Levy;
(iii) the National Health Insurance Levy; and
(iv) the levy imposed under paragraph (b) of section 23

of the Tourism Act, 2011 (Act 817). (2) For the purposes of this Act, the open market value of a supply of goods or services is the value determined under paragraph (a) of subsection (1), if the supplier, the purchaser or any other person concerned in the transaction

(a) are completely independent of each other; and
(b) do not in any way influence the transaction.

(3) Where the open market value of a taxable supply cannot be determined under this section, the open market value of the supply is the value determined by the Commissioner-General having regard to all the circumstances of the supply or a similar supply. ( 4) The taxable value of a taxable supply

(a) of goods under a hire purchase agreement or a finance lease,
(b) of goods by way of an application to a different use,
(c) for reduced consideration, or
(d) described in subsection (3) of section 20,

is the open market value of the goods or services at the time the supply is made, excluding, in the case of a hire purchase agreement or finance lease, any separately stated interest or finance charges. (5) Where a taxable supply is made without a separate amount for the consideration identified as a payment of the Tax, the taxable value of that supply is the amount of the consideration paid excluding the Tax and the levy imposed under paragraph (b) of section 23 of the Tourism Act, 2011 (Act 817). (6) For the purposes of subsection (3), "similar supply," in relation to a taxable supply, means a supply that is identical to or substantially resembles the taxable supply, having regard to the characteristics, quality, quantity supplied, functional components, reputation of, and materials comprising the goods or services which are the subject of the taxable supply. (7) Where a supply is made by a taxable person for no consideration or for a consideration that is less than the open market value of that supply and

(a) the supplier and the recipient are related persons, or
(b) the recipient is a charitable organisation approved by the

Commissioner-General, the value of the supply is the open market value of the supply. (8) Where a taxable person makes a supply of goods or services referred to in section 23, the value of the supply is the lesser of

(a) the consideration paid or payable by the taxable person for

the goods or services; and

(b) the open market value of the supply.

(9) The Minister may, by legislative instrument, make Regulations to prescribe rules to determine the value of a supply under subsection (8) where the taxable person applies less than the entire goods or services to a different use. (10) The value of a supply of goods under a credit agreement is the cash value of the supply. (11) Where, under subsection (1) of section 23, a debtor makes a supply of goods as a result of the repossession of the goods from the debtor by the creditor under a credit agreement, the value of the supply is an amount equal to the balance of the cash value of the supply of the goods to the debtor that has not been recovered at the time of the supply. (12) For the purposes of subsection (11), the balance of the cash value of the supply is the amount that remains after deducting from the cash value so much of the sum of the payments made by the debtor under the credit agreement as, on the basis of an apportionment in accordance with the rights and obligations of the parties to the agreement, may properly be regarded as having been made in respect of the cash value of the supply. (13) The value ofa supply of services under section 24 is an amount equal to the amount referred to in section 24 that is retained or recoverable. (14) Where

(a) the whole or a part of a taxable activity engaged in by a

taxable person consists of supplying to a number of persons goods to be sold, whether by the persons or others, to consumers at retail, and

(b) the persons to whom the goods are supplied are not taxable

persons, the Commissioner-General may, by notice in writing to the taxable person, direct that the value of the supply made after the receipt of the notice or after a later date that may be specified in the notice shall be considered the open market value of the supply on a sale to consumers at retail. (15) Where the grant of a right to receive goods or services for a monetary value stated on a token, voucher, gift certificate, or stamp is a supply referred to in subsection (2) of section 30, the value of the supply shall be an amount equal to the amount by which the consideration exceeds the monetary value of the token, voucher, gift certificate, or stamp. (16) Where the holder of a token, voucher, gift certificate, or stamp issued by a taxable person who is the issuer for no consideration surrenders the token, voucher, gift certificate or stamp to a supplier of goods or services other than the issuer in return for a price discount on a taxable supply, the supplier shall include in the value of the supply of the goods or services the monetary value stated on the token, voucher, gift certificate or stamp, less the tax fraction of the monetary value. (17) For the purposes of subsection (16), the monetary value includes the Tax.

45. Taxable value for determining Tax on imported goods and services

45. (1) The value for determining the Tax chargeable on taxable imports of goods is

(a) the import value calculated in accordance with sections 67

to 68 of the Customs Act, 2015 (Act 891);

(b) the import duties and taxes other than the Tax; and

{c) the cost of insurance and freight which is not included in the customs value under this subsection. (2) Subject to subsection (3), the value of an import of services is the amount of the consideration for the import. (3) The value of the import of services is the open market value of the import of the services where {a) an import of services is made for no consideration or for a consideration that is less than the open market value of that import; and

(b) the supplier and the recipient are related persons.

( 4) Where a portion of the price of an import of services represents Tax imposed by this Act that is not accounted for separately, the value of the import is the price reduced by an amount equal to the tax fraction multiplied by that price.

46. Adjustments

46. (1) This section applies where, in relation to a taxable supply by a taxable person, {a) the supply is cancelled;

(b) the nature of the supply is fundamentally varied or altered;
(c) the previously agreed consideration for the supply is altered

by agreement with the recipient of the supply, whether due to an offer of a discount or for any other reason; or

(d) the goods or services or a part of the goods or services are

returned to the supplier. (2) Where in addition to a condition in subsection (1), the taxable person making the supply has

(a) given a tax invoice in relation to the supply and the amount

shown on the invoice as the Tax charged on the supply is incorrect because of the occurrence of an event specified in subsection (1), or {b) filed a return for the period in which the supply was made and has accounted for an incorrect amount of output tax on that supply because of the occurrence of an event specified in subsection (1), the taxable person making the supply shall make an adjustment in accordance with subsections (3) and (5). (3) Where the output tax chargeable in respect of the supply exceeds the output tax accounted for by the taxable person making the supply, the amount of the excess shall be considered as the Tax charged by the taxable person in relation to a taxable supply made in the tax period in which the event referred to in subsection (I) occurred. (4) For the purposes of subsection (3), the taxable person making the supply shall issue to the recipient of the supply a tax debit note

(a} that contains the particulars specified in the Fourth

Schedule; and

(b} in the form specified by the Commissioner-General.

(5) Subject to subsection (6), where the output tax accounted for exceeds the output tax chargeable in relation to that supply, the taxable person making the supply may deduct input tax for the amount of the excess in the tax period in which the event referred to in subsection (1) occurred. (6) For the purposes of subsection (5), the taxable person making the supply shall issue to the recipient of the supply, a tax credit note

(a} that contains the particulars specified in the Fourth

Schedule; and

(b} in the form specified by the Commissioner-General.

(7) A deductible input tax is not allowed under subsection (5), where the supply has been made to a person who is not a taxable person, unless the amount of the excess tax has been repaid by the taxable person to the recipient, whether in cash or as a credit against an amount owed to the taxable person by the recipient. (8) A person who ( a} fails to provide a tax credit note or tax debit note as required under this Act, or

(b} provides a tax credit note or tax debit note otherwise than

as required by this section is, in addition to the penalty imposed under subsection (1) of section 66, liable to a penalty of three times the amount of the Tax involved or two hundred and fifty currency points, whichever is greater. Value Added Tax Act; 2025

47. Adjustment on account of bad debts

47. (1) Where

(a} a taxable person issues a tax invoice for the supply of taxable

goods or services, and

(b} the whole or part of the consideration for the supply is not

received by the taxable person, the taxable person may deduct input tax under section 49 for the Tax paid in respect of the taxable supply that is subsequently treated as a bad debt. (2) Subject to subsection (5), the amount of the deduction allowed under subsection ( 1) is the amount of the Tax paid in respect of the taxable supply which corresponds to the amount of the debt treated as a bad debt. (3) The deduction under subsection (1)

(a} becomes due on the date the bad debt is written off in the

accounts of the taxable person; and

(b} is available only if the taxable person satisfies the

Commissioner-General that reasonable efforts have been made to recover the amounts due and payable. (4) For the purposes of subsection (3), a debt shall be considered irrecoverable where a taxable person satisfies the Commissioner-General that

(a} the taxable person has undertaken an action to recover the

debt;

(b} the action for the recovery has exhaustively proven futile;

and

(c} the taxable person has made all the necessary entries in the

book of accounts. (5) Where an amount in respect of which a deduction has been allowed in accordance with subsection (2) is at any time wholly or partly recovered by the taxable person,

(a) the taxable person is considered to have charged the Tax in

respect of a taxable supply made during the tax period in which the bad debt is wholly or partly recovered; and

(b) the amount of the Tax shall be calculated according to the

following formula: Ax B/C where,

(i) A is the amount allowed as a deduction under

subsection (2);

(ii) B is the amount of the bad debt recovered; and
(iii) C is the amount of the bad debt previously written

off. (6) A deduction shall be allowed under subsection (1) only if ( a) the taxable supply was made to a person other than a taxable person; or

(b) the taxable supply was made to a taxable person and the

person claiming the deduction under subsection (1) issued a tax credit note to the taxable purchaser listing the amount claimed under subsection (2). Calculation of Tax Payable and Refunds

48. Tax payable for tax period

48. (1) The Tax payable by a taxable person for a tax period is the total amount of output tax chargeable by the person in respect of the taxable supplies made, or considered to have been made during the tax period, excluding the total deductible input tax allowed for the tax period under section 49. (2) Where the total amount of deductible input tax allowed to a taxable person for a tax period exceeds the total amount of output tax chargeable by that person for the tax period, the amount of the excess input tax shall be dealt with in accordance with section 53. (3) The Tax payable on an import of services, other than as specified under section 31, is provided under section 61. (4) Where it is difficult under the rules in this Act for taxable persons in certain industries to calculate the tax liability of the taxable persons, the Minister may, by legislative instrument, make Regulations to prescribe the method by which the taxable persons shall account for the taxable activity and calculate the tax payable. Value Added Tax Act, 2025 Actll51

49. Deductible input tax

49. (1) Subject to section 52, at the end of the tax period provided for in this Act or prescribed by Regulations, a taxable person may deduct the following from the output tax due for the period

(a) tax on goods and services purchased in the country and

goods imported by that person and used wholly, exclusively and necessarily in the course of the taxable activity of that person, subject to the condition that

(i) the supply is a taxable supply;
(ii) in respect of purchases made in the country, the

taxable person is in possession of a tax invoice issued under this Act; and

(iii) in respect of the import or removal of goods from

a bonded warehouse, the taxable person is in possession of relevant customs entries indicating that Tax was paid;

(b) input tax deduction allowed under sections 46 and 47 for

the tax period;

(c) an amount equal to the tax fraction of any amount paid

during the tax period by the taxable person to indemnify another person under a non-life insurance contract where

(i) the supply of the non-life insurance contract is a

taxable supply;

(ii) the payment is not in respect of the supply of goods

or services to the taxable person or the importation of goods or services by the taxable person;

(iii) the supply of the non-life insurance contract is not

a supply charged with Tax at a rate of zero per cent under section 36; and

(iv) the payment does not result from a supply of goods

or services to that other person where the goods are situated outside the country or the services are physically performed elsewhere than in the country at the time of the supply; and

(d) an amount equal to the tax fraction of any amount paid

during the tax period by the taxable person to a supplier in respect of the redemption of a token, voucher, gift certificate, or stamp referred to in subsection 16 of section 44. (2) The tax deducted from the output tax under subsection (1) is known as deductible input tax or an input tax deduction. (3) Unless otherwise provided in this Act, an input tax deduction shall not be allowed on purchases or imports in respect of exempt supplies by the taxable person. ( 4) An input tax deduction shall not be made

(a) more than once; or
(b) after the expiration of a period of six months after the date

the deduction accrued. (5) Despite subsection (1), a taxable person who is issued a Fiscal Electronic Device for use

(a) shall, for the purposes of claiming deductible input tax in

accordance with this section, give the Taxpayer Identification Number of that taxable person to a vendor who is a registered taxable person whenever the taxable person is making purchases of taxable supplies from that vendor; and

(b) may deduct from the output tax, deductible input tax in

respect of which the Taxpayer Identification Number of the taxable person has been given to the vendor, before the end of the tax period to which the input tax relates.

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