Ghana’s tax authority has introduced a real-time VAT collection system on cross-border digital services, but it stresses this is not a new tax. The Ghana Revenue Authority (GRA) launched the Real-Time Value Added Tax (RTVAT) Framework on September 22, 2026, aiming to close a significant VAT collection gap on digital transactions from foreign service providers.
In 2022, only a handful of non-resident e-commerce businesses were registered with the GRA, but that number has since grown to about 167. These companies now contribute around GH¢43 million monthly and roughly GH¢515 million annually in VAT. Despite this progress, a sizeable portion of VAT from digital services remains uncollected, prompting the GRA to seek more effective collection tools.
The RTVAT system uses the Sentinel® platform to track and collect VAT at the point of payment when consumers in Ghana pay for eligible cross-border digital services. These include online subscriptions like Netflix, HBO, and Amazon Prime; cloud services such as Microsoft Azure and Google Cloud; online gaming platforms like PlayStation Plus and Xbox Game Pass; as well as online marketplaces and digital advertising.
RTVAT activates when three conditions are met: the payment instrument is issued in Ghana (such as a Ghana-issued card or mobile money account), the merchant is non-resident, and the service is supplied electronically. VAT is charged at the standard rate of 15%, plus a combined 5% levy for GETFund and NHIL, totaling 20%. This is the same rate set out in the Value Added Tax Act, 2025 (Act 1151).
Elsie Appau-Klu, a lawyer and technical advisor to the GRA’s Commissioner-General, said, “RTVAT is not a new tax. It is a timely, accurate and transparent mechanism for collecting the VAT that is already due on cross-border digital services.”
For customers, the payment process remains unchanged. VAT is included in the total payment, automatically separated by the payment platform, and remitted to the GRA. Consumers receive SMS notifications when VAT is deducted. If a consumer feels they have been wrongly charged and do not get a refund automatically, they should contact their bank or electronic money issuer, which are required to have dispute resolution procedures.
Non-resident digital service providers must register for VAT with the GRA, regardless of their turnover. Registered providers must display prices exclusive of VAT and inform customers about the VAT charge at payment. Non-registered providers have to register through GRA’s online portal and continue to file periodic VAT returns, reconciling real-time collections especially for business-to-business transactions where reverse charge may apply.
The new system also places mandatory compliance requirements on financial institutions handling these transactions, including banks, payment service providers, electronic money issuers, and third-party payment providers. These institutions must integrate with the RTVAT framework and remit the VAT collected.
Commissioner General Anthony Kwasi Sarpong and Dr Martin Kolbil Yamborigya, Commissioner of the Domestic Tax Revenue Division, have backed the campaign to improve VAT compliance. The GRA’s reforms also included abolishing some nuisance taxes like the E-Levy and COVID-19 Levy in favour of a unified VAT rate.
The GRA says RTVAT promotes fairness by ensuring foreign digital businesses pay VAT just like local ones. It also improves accuracy, timeliness, and transparency in tax collection. The authority advises the public to rely only on official GRA channels and approved Sentinel® communications for information about the new system.
The introduction of this system comes as Ghana’s digital economy grows faster than the current VAT collection methods can keep up with. The GRA’s efforts show a firm push to adapt tax collection to the digital age and reduce revenue leakages from international digital services used by consumers in Ghana.
According to Joy Online.
