Value Added Tax (VAT) is one of the most significant taxes for businesses in Ghana. If your annual turnover exceeds GH?200,000 (or you expect it to), you must register for VAT with the Ghana Revenue Authority (GRA). Failure to do so ? or charging VAT without being registered ? carries serious penalties.
Step 1: Determine If You Must Register
Registration is compulsory when annual taxable turnover exceeds GH?200,000. You may also voluntarily register below this threshold if it benefits your business (for example, to reclaim input VAT on purchases).
Step 2: Complete Registration
Register at your nearest GRA office or through the GRA online portal. You will need your business registration documents, TIN certificate, and evidence of business activity. The GRA typically processes registrations within 2?4 weeks and issues a VAT certificate and registration number.
Step 3: Charge and Collect VAT
Once registered, you must charge VAT at 15% on all taxable supplies and issue VAT invoices. Your VAT invoice must show your registration number, the VAT amount separately, and all required details.
Step 4: File Returns and Pay
VAT returns must be filed monthly (or quarterly for the VAT Flat Rate Scheme) and payment made by the last working day of the following month. You remit the net VAT ? output VAT collected minus input VAT paid on your business purchases.
Our team manages VAT registration, filing and reconciliation for clients across Ghana. Contact us to take this off your plate.