The government expects to collect approximately GH¢2.3 billion in its first full year of implementing a cross-border Value Added Tax (VAT) digital solution targeting non-resident platforms, Finance Minister Dr. Cassiel Ato Forson announced.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, Dr. Forson emphasized that the revenue projection will be achieved through technology-driven compliance rather than raising tax rates.
Following a successful pilot program in April 2026, the technology solution was verified as secure, functional, and fully compliant with regulatory standards.
“Government is now moving decisively to secure the necessary regulatory approval for its nationwide rollout. Upon full deployment, the system is projected to generate about GH¢2.3 billion in its first full year of operation, with revenue expected to grow by about 20% annually,” Dr. Forson stated. “This simply ensures that cross-border digital platforms earning income from Ghanaian customers pay their fair share of taxes.”
Broader VAT System Overhaul
The digital tax implementation forms part of a wider restructuring of Ghana’s VAT architecture. Key legislative updates highlighted in the mid-year review include:
Rate Reduction: Lowering the effective VAT rate from 21.9% to 20%.
Levy Decoupling: Decoupling the GETFund and NHIL levies from the VAT base to allow input tax deductions, alongside the permanent abolition of the COVID-19 Health Recovery Levy.
Sector Exemptions: Eliminating VAT on mineral reconnaissance and prospecting, while extending the zero-rating status for locally manufactured textiles through 2028.
Dr. Forson concluded that while policy adjustments have reduced the tax burden on domestic micro and small businesses, digital technology will remain the core mechanism for sustainable revenue mobilization.
