VAT Registration Threshold Increased to GH₵750,000

Ghana Revenue Authority News

Published January 1st, 2026

Detected March 23rd, 2026

Summary

The Ghana Revenue Authority has announced an increase in the VAT registration threshold for businesses dealing in goods from GH₵200,000 to GH₵750,000, effective January 1, 2026. This change is part of broader reforms under the Value Added Tax Act, 2025 (Act 1151), which also includes the abolition of the COVID-19 Health Recovery Levy and the VAT Flat Rate Scheme.

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What changed

The Ghana Revenue Authority (GRA) has issued a notice detailing significant reforms to the Value Added Tax (VAT) system under the new Value Added Tax Act, 2025 (Act 1151). Key changes include raising the VAT registration threshold for businesses dealing in goods from GH₵200,000 to GH₵750,000. Additionally, the COVID-19 Health Recovery Levy has been abolished, and the GETFund and NHIL levies will now be treated as input tax deductions, with the total effective VAT rate remaining at 20% (15% VAT + 2.5% NHIL + 2.5% GETFund). The VAT Flat Rate Scheme has also been abolished.

These reforms are effective January 1, 2026. VAT registered taxpayers, employers, accountants, auditors, importers, exporters, clearing agents, and tax consultants must update their systems and processes to comply with the new threshold and the unified VAT structure. The GRA aims to simplify the VAT system, promote equity, improve administrative efficiency, and encourage voluntary tax compliance through these changes.

What to do next

Update VAT registration status if turnover is between GH₵200,000 and GH₵750,000.
Adjust accounting systems to reflect the abolition of the COVID-19 Health Recovery Levy and the VAT Flat Rate Scheme.
Ensure compliance with the new input tax credit rules for GETFund and NHIL levies.

Source document (simplified)

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Notice to All VAT Registered Taxpayers

NOTICE TO ALL VAT REGISTERED TAXPAYERS

Following the passage of Value Added Tax Act, 2025 (Act 1151), which covers significant reforms in the administration of Value Added Tax (VAT), all VAT registered taxpayers and the general public are entreated to take note of the following:

• The threshold for VAT registration for businesses who deal in goods has been increased from GH₵200,000 to GH₵750,000.

• The COVID-19 Health Recovery Levy has been abolished.

• The recoupling of NHIL and GETFund levies, to allow for input tax credit claims.

• GETFund and NHIL levies will be treated as input tax deductions.

• The VAT rate remains at 15% while the NHIL and GETFund levies stay at 2.5% each, bringing the total effective VAT rate to 20%. This approach is designed to ease the tax burden on households and businesses while still supporting essential national programmes.

• The VAT Flat Rate Scheme (VFRS) has been abolished with the introduction of a unified and more transparent VAT structure.

• Effective Implementation of the VAT Act is January 1, 2026.

The general public, particularly VAT Registered Taxpayers, Employers, Accountants, Auditors, Importers, Exporters, Clearing Agents and Tax Consultants are to note that

these reforms are designed to simplify the VAT system, promote equity, improve administrative efficiency, and encourage voluntary tax compliance.

For further inquiries, kindly visit the nearest Taxpayer Service Centre, call GRA Toll – free on 0800 900 110, WhatsApp on 055 299 0000 or 020 063 1664, or email info@gra.gov.gh.