The Ghana Revenue Authority (GRA) has clarified that the GH¢750,000 threshold introduced under the new Value Added Tax (VAT) reforms applies solely to businesses supplying goods, not services.
This clarification was made during a public lecture held on Friday, January 2, 2026, as part of the rollout of the VAT reforms that officially took effect on January 1, 2026.
Dr. Dominic Naab, Acting Head of the GRA’s Strategy and Research Department, explained that while service providers are exempt from the threshold requirement, they are still legally obligated to register under the new VAT system. The revised VAT framework aims to streamline compliance procedures and enhance efficiency across different sectors of the economy.
“It is important to note that the GH¢750,000 threshold is only applicable to the supply of goods. For the supply of services, there is no threshold. If you provide services, the threshold does not apply to you. By law, every person who provides services is required to register,” Dr. Naab clarified.
Dr. Naab also advised businesses that fall below the VAT registration threshold but have not yet been formally deregistered to continue charging VAT at the standard rate of 20%. This rate excludes the 1% COVID-19 levy and the 3% VAT flat rate.
“With the new Act, businesses can no longer charge the VAT flat rate. If the Commissioner-General has not officially deregistered you, you remain a VAT-registered entity. In that case, you should continue charging VAT at the standard rate until you receive official communication from the Commissioner-General about your deregistration or continued registration,” he explained.
The GRA emphasized that these reforms are part of a broader effort to improve revenue mobilization and ensure fairness and transparency in the tax system.
Source: Citinewsroom.com
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