GRA Clarifies: Banks Begin Collecting Existing 20% Tax on Cross-Border Digital Services from October 15

The Ghana Revenue Authority (GRA) has directed commercial banks and other payment service providers to start collecting the existing combined 20% tax on qualifying cross-border digital services with effect from Thursday, October 15, 2026. The measure covers electronically supplied services paid for with Ghana-issued bank cards, mobile money and other digital payment platforms. Platforms potentially affected include streaming services such as Netflix and Spotify, productivity tools, cloud computing, and artificial intelligence platforms including ChatGPT, among others.

Importantly, the GRA has stressed that this is not a new tax and does not increase the existing rate. The 20% figure comprises the longstanding 15% Value Added Tax (VAT), 2.5% National Health Insurance Levy (NHIL) and 2.5% Ghana Education Trust Fund (GETFund) Levy under the Value Added Tax Act, 2025 (Act 1151). The change is purely in the method of collection: instead of relying mainly on foreign providers to charge and remit the tax, banks and payment platforms will now deduct and remit the applicable amounts at the point of payment.

Consumers whose service providers already include and remit the statutory taxes in their subscription prices should not face any additional charge. Approximately 92 non-resident digital service providers are already registered and remitting VAT to the GRA. However, the Authority has identified around 100 additional providers that have not been charging or remitting the taxes; as these are brought into compliance, users of those services may see the 20% reflected in their payments for the first time.

The new real-time collection framework is designed to improve visibility of transaction volumes and ensure that revenue due to the state is properly accounted for. For a qualifying subscription priced at GH¢1,000 before taxes, the combined levies would amount to GH¢200 where they have not already been included, bringing the total to GH¢1,200. The GRA continues to urge the public to note that the system applies only to digital services and not to the import of physical goods.

@Volta Today