GRA to bring 100 unregistered foreign digital firms into VAT net as tax compliance tightens

The Ghana Revenue Authority has set its sights on approximately 100 foreign digital service providers operating in Ghana who are not currently remitting Value Added Tax, marking a significant expansion of the tax collector's compliance drive.

Commissioner-General Anthony Kwasi Sarpong revealed the identification during recent discussions about the 20% tax regime applied to streaming services and other cross-border digital transactions. The GRA will gradually integrate these non-compliant providers into its formal tax collection system as part of its broader compliance expansion strategy.

Current compliance and new technology approach

The GRA currently works with about 92 foreign companies that remit VAT on their services. The push to bring in the additional 100 providers represents a major step forward in capturing revenue from the rapidly growing digital services market in Ghana.

Importantly, the GRA has clarified that this expansion will not result in price increases for consumers using services from the 92 existing compliant providers. The new collection mechanism will not impose additional charges on top of the 20% already being collected, which comprises 15% VAT, 2.5% National Health Insurance Levy and 2.5% GETFund Levy.

The Authority is implementing a Real-Time VAT framework that uses technology to separate the tax component at the point of payment, transfer it directly to government accounts, and remit the remainder to service providers. This addresses a longstanding challenge: under the previous arrangement, the GRA depended entirely on company declarations to verify transactions, with limited ability to independently cross-check the accuracy of reported numbers and values.

Why it matters for Ghana

Ghana has imposed VAT obligations on foreign digital service providers since 2013, yet compliance has remained inconsistent. The new system addresses a significant revenue leakage from the government, particularly as Ghanaians increasingly subscribe to international streaming platforms, software services and other digital offerings.

By collecting tax at the point of payment through mobile money platforms, digital payment services and bank cards, the GRA gains real-time visibility into cross-border transactions. This technological approach reduces reliance on corporate honesty and creates an automated audit trail. For the Ghanaian government, the move represents potential millions of cedis in additional annual tax revenue that currently escapes the tax net.

The framework also protects smaller Ghanaian digital service providers who operate domestically and remit VAT locally, creating a more level playing field in the market.

Scope and implementation details

The GRA has been explicit that this intervention applies only to services—such as subscriptions, software licences and digital content—rather than physical goods. Imported tangible products are already assessed for duties and VAT at Ghana's borders, so the new framework will not affect online shopping for physical items.

The rollout will proceed in stages as the Authority works to ensure smooth integration and compliance from both service providers and payment processors. Initial implementation will cover payments made through all digital channels, not merely card payments, ensuring broad coverage of how Ghanaians consume these services.