Other than exempt goods and services, VAT is charged on the following:
- Supply of goods and services made in Ghana.
- Importation of goods.
The standard VAT rate is 15%. However, supplies of a retailer of goods whose annual turnover is at least GHS 200,000 but does not exceed GHS 500,000 are taxed at a flat rate of 3%.
A flat rate of 5% is also applicable on the taxable supply of immovable property by a taxable person:
- for rental purposes other than for accommodation in a dwelling or in a commercial rental establishment, or
- who is an estate developer.
IMPORTANT
VAT is charged on the supply of goods and services where the supply is a taxable supply and made by a taxable person in the course of business. Taxable persons or VAT-registered persons are required to issue tax invoices through the Certified Invoicing System (CIS). This requires the integration of the taxpayer's system with that of the GRA.
VAT is payable by the taxable person making the supply in the case of taxable supply and by the importer in the case of imported goods.
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