The Ghana Revenue Authority (GRA) has rejected claims that a newly introduced digital Value Added Tax (VAT) collection system will add a new 20% tax to subscriptions for platforms such as Netflix, Google and Amazon.
In a press release dated Wednesday, October 14, 2026, the Authority clarified that the system would neither create a new tax nor raise existing rates.
Instead, it is designed to strengthen the collection of taxes already imposed on digital services provided to Ghanaian consumers by companies based outside the country.
“The applicable effective tax rate remains 20%, comprising 15% VAT, 2.5% National Health Insurance Levy (NHIL) and 2.5% Ghana Education Trust Fund (GETFund) Levy,” the GRA said.
The Authority explained that customers who already pay the required taxes through their subscriptions should not be charged again on the same transactions.
It disclosed that around 92 foreign digital service providers were registered and currently remitting VAT to the GRA.
However, approximately 100 other providers had been identified as failing to charge and remit the applicable taxes.
The Authority said the additional providers would be brought into compliance gradually. As a result, customers using their services may begin seeing the relevant statutory taxes included in their payments if those charges were not previously applied.
According to the GRA, the new system will allow the tax portion of eligible transactions to be identified and collected during payment processing through participating financial institutions and payment service providers.
Under the current system, the Authority depends largely on foreign digital service companies to report their transactions and pay the taxes due.
The new arrangement is expected to strengthen tax compliance, improve transparency and enhance accountability in the collection of government revenue.
The GRA further clarified that the system would cover eligible electronically supplied services, including streaming platforms, cloud computing, online gaming and digital advertising paid for using Ghana-issued payment instruments such as bank cards, mobile money and other digital payment platforms.
However, the Authority emphasised that the system would not cover physical goods imported through international e-commerce platforms, as such purchases remain subject to the relevant Customs procedures.
To prevent customers from being taxed twice, the GRA said it would continue consultations with banks, payment service providers and digital service companies.
These engagements are also intended to ensure that consumers receive clear information about the charges applicable to their transactions.
The Authority urged members of the public who encounter charges that appear inconsistent with its clarification to seek assistance and redress through its official communication channels.
The GRA maintained that the initiative seeks to improve tax compliance, ensure fair treatment of local and foreign service providers, and guarantee that taxes already mandated by law are collected and properly accounted for.
