GRA Cuts VAT, Intensifies Compliance Drive

  


The Ghana Revenue Authority (GRA) has kicked off 2026 with a renewed focus on tax compliance, as Commissioner-General Anthony Sarpong declares the year "a year of compliance".

In his New Year message, Sarpong urged taxpayers to comply with tax laws, emphasizing the GRA's commitment to building a fair and trusted tax system.

The amended Value Added Tax (VAT) Act, effective January 15th, 2026, aims to simplify the tax system, consolidate tax laws, and improve compliance through digitization.

Key changes include:the
- VAT Rate Reduction: The VAT rate has been reduced from 21.9% to 20%
- Abolition of COVID-19 Levy: The COVID-19 Health Recovery Levy has been abolished
- Decoupling of VAT on GETFund and NHIS Levies: VAT on GETFund and NHIS levies has been decoupled
- Increased Registration Threshold: The VAT registration threshold has been increased from GH¢200,000 to GH¢750,000
- Digitalization: The GRA will leverage technology, including an Integrated Tax Administration System (ITAS) and Artificial Intelligence5 (AI) system for Customs valuation

Meanwhile, Mr Sarpong at a recent Editors' forum in Accra highlighted the GRA's plans to leverage technology, including the rollout of an Integrated Tax Administration System (ITAS) by March 2026 and an Artificial Intelligence (AI) system for Customs valuation.

The authority will also intensify public education and sensitization on the new tax regime.

"Improved stakeholders' relation and tax compliance are key to our success," Sarpong emphasized, urging taxpayers to understand the changes and comply with the new rules.

The GRA aims to simplify tax experiences for businesses, making compliance easier and more efficient.

The amended VAT Act is expected to boost revenue mobilization, support economic growth, and enhance Ghana's development agenda.

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