Ghana's 2026 VAT reform: VAT, NHIL and GETFund on your invoices

Ghana's VAT changed on 1 January 2026, when the Value Added Tax Act, 2025 (Act 1151) took effect. For most businesses the headline is simpler invoices and a lower total: VAT at 15%, the National Health Insurance Levy (NHIL) at 2.5% and the GETFund Levy at 2.5% are now all charged on the same price, and the 1% COVID-19 Health Recovery Levy has been abolished (GRA).

What changed

According to the Ghana Revenue Authority, the reform:

• Abolished the COVID-19 levy of 1%.
• Charges VAT, NHIL and GETFund on the same base. Before 2026, the levies were added to the price first and VAT was then charged on the higher total. Now each is a percentage of the selling price, so the combined rate is exactly 20%.
• Restores input tax credit for NHIL and GETFund. VAT-registered businesses can claim the levies paid on purchases, as they claim VAT.
• Raised the registration threshold for businesses dealing in goods from GHS 200,000 to GHS 750,000 a year.
• Removed the flat rate schemes: the 3% scheme for goods and the 5% scheme for immovable property.
• Relieved mining exploration: supplies of goods and services for reconnaissance and prospecting are relieved from VAT, provided the licence holder registers with GRA and gives satisfactory documentation.
• Announced Fiscal Electronic Devices for VAT-registered businesses.

Who it affects

Every VAT-registered business in Ghana, and anyone who buys from them. Three groups should act first:

• Traders below GHS 750,000 in annual goods sales, who may no longer need to be registered. GRA says former flat-rate taxpayers below the threshold stay registered until the Commissioner-General de-registers them, so speak to your tax office rather than simply stopping.
• Former flat-rate businesses above the threshold, who now charge the standard rates and claim input tax.
• Junior miners and exploration contractors, who can obtain the prospecting relief if their paperwork is in order.

Worked example

GRA's own illustration uses a selling price of GHS 1,000:

The customer pays GHS 19 less, an effective rate of 20% instead of 21.9%. For a VAT-registered buyer, the bigger gain is that the GHS 50 of NHIL and GETFund is now claimable as input tax rather than being a cost.

Your invoices

GRA requires businesses that issue their own computer-generated invoices or receipts to show separate lines for NHIL at 2.5%, GETFund at 2.5% and VAT at 15%. Where a price includes all three, it goes in the "total tax inclusive value" field. Check that your accounting or point-of-sale system:

• calculates all three on the same net value;
• shows them as three lines on the invoice;
• posts them so input NHIL and GETFund can be claimed on purchases.

Zero-rated supplies are also zero-rated for NHIL and GETFund, and exempt or relieved supplies are exempt or relieved from both levies.

What to do next

• Update invoice templates and tax codes so every invoice shows VAT, NHIL and GETFund separately.
• Claim input NHIL and GETFund on purchase invoices dated from 1 January 2026.
• Review your registration against the GHS 750,000 threshold if you sell goods, and talk to GRA before de-registering.
• For exploration work, register the prospecting or reconnaissance licence with GRA and keep the documents that support the relief.
• File on time: returns and payment are due by the last working day of the month after the period, so October's return is due by the last working day of November (GRA).

RenolERP is set up for Ghana's three-line invoices and input credits. If you run a junior mining or exploration business, see how it handles crew payroll and haulage in our mining demo, or ask us about the prospecting relief.

General information, not professional advice. Rules change; check the sources above or ask us before acting. Last reviewed 9 Nov 2026.