To reform its VAT regime and improve efficiency in the tax administration, the parliament of Ghana has approved the VAT Bill, 2025. The Bill includes new legislative measures impacting tax calculation in invoices.
In 2026, the COVID-19 Health Recovery Levy, which imposed a 1% charge on goods, services, and imports without allowing input tax deductions, will be abolished. Additionally, the effective VAT rate will decrease from 21.9% to 20%. Businesses will be able to deduct the Ghana Educa…