The Commissioner-General of the Ghana Revenue Authority (GRA), Anthony Kwasi Sarpong, has assured consumers that the Authority’s new digital Value Added Tax (VAT) collection system will not impose an additional 20 per cent charge on subscriptions to platforms already collecting the tax.
Speaking on Joy FM’s Super Morning Show on Wednesday, October 14, 2026, during a discussion on VAT on Netflix, Spotify and other digital services, Mr Sarpong explained that the reform is designed to improve the collection of existing taxes rather than introduce an additional levy.
“So this system is not adding another 20 per cent to what you already pay. It is already embedded, and consumers are paying,” he said.
He disclosed that the GRA currently receives VAT remittances from approximately 92 foreign service providers, assuring customers that prices for services offered by these companies should not change as a result of the new collection arrangement.
“Nothing will change in terms of pricing from 92 merchants or entities,” he stated.
However, Mr Sarpong revealed that the Authority had identified about 100 additional foreign service providers that were not charging VAT and would gradually bring them into the tax collection system.
He clarified that the assurance of unchanged prices applies to services whose charges already include the applicable taxes.
New system to improve VAT collection
Explaining the rationale behind the reform, Mr Sarpong said the GRA currently relies on foreign digital service providers to report their transactions and remit the taxes collected from consumers in Ghana.
He noted that the arrangement limits the Authority’s ability to independently verify the volume and value of transactions conducted through these platforms.
Using Netflix as an example, he explained that the new system would enable the tax component to be separated at the point of payment, with the applicable amount transferred to the government and the balance paid to the service provider.
“We are using technology to smartly account for and collect the component that belongs to the government of Ghana,” he said.
According to him, the system would also give the GRA better visibility into the number and value of transactions and the corresponding taxes due, reducing its reliance on information provided solely by the companies.
The clarification follows the introduction of the GRA’s Real-Time VAT framework for qualifying cross-border digital services.
In an earlier report, Elsie Appau-Klu, Technical Advisor to the Commissioner-General, explained that the framework collects existing VAT at the point of payment through participating financial institutions.
The combined 20 per cent charge consists of 15 per cent VAT, a 2.5 per cent National Health Insurance Levy and a 2.5 per cent GETFund Levy.
Mobile money and digital wallets included
The framework applies to electronically supplied services from non-resident providers when payments are made using Ghana-issued payment instruments.
These include bank cards, mobile money accounts and digital wallets. Covered services include streaming subscriptions, cloud computing, online gaming and digital advertising.
Mr Sarpong stressed that the collection system would not be limited to bank card transactions.
“So it’s not only for a card,” he said, explaining that mobile payments and other digital payment platforms would also be captured when qualifying transactions pass through the payment system.
The expanded payment coverage is intended to improve the collection of taxes on digital services purchased by consumers in Ghana, regardless of the payment method used.
Physical goods excluded from initial rollout
The Commissioner-General also clarified that the initial implementation covers digital services rather than physical products purchased through international e-commerce platforms such as Amazon and Alibaba.
He explained that imported goods are already subject to tax assessment at Ghana’s borders, where applicable duties and VAT are calculated.
“So it is not going to affect goods or products, tangible products at the moment,” he said.
Although the possibility of extending the system to physical goods could be considered in the future, Mr Sarpong emphasised that such products are outside the scope of the initial rollout.
The GRA says the reform is intended to strengthen compliance, improve transparency and ensure that taxes due on digital services consumed in Ghana are accurately accounted for and collected.
