VAT is a tax applied on the value added to goods and services at each stage in the production and distribution chain.
Vat on Services in Ghana
GRA – Ghana Revenue Authority
Ghana – Indirect Tax Guide
Which services are VAT exempt?
insurance, finance, and credit.
education and training.
fundraising events by charities.
subscriptions to membership organisations.
selling, leasing, and letting of commercial land and buildings – this exemption can be waived.
How do you calculate VAT on a service?
Computing Net VAT Payable on VAT “exclusive” Sales/Receipts. Total Output Tax Due or Total Vatable Sales/Receipts x 12% …
Computing Net VAT Payable on VAT “inclusive” Sales/Receipts. Total Output Tax Due or Total Vatable Sales / 1.12 x 12%.
What is the current VAT rate in Ghana?
12.5 percent What is the standard VAT/GST rate? The standard VAT rate is 12.5 percent calculated on the value of the taxable supply of goods or services or the value of an import.
What is the difference between zero-rated and exempt VAT?
Zero–rated items are goods on which the Government charges VAT but the rate is currently set to zero.
What percentage is VAT?
The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%). Some things are exempt from VAT, such as postage stamps, financial and property transactions.
The VAT rate businesses charge depends on their goods and services. Check the rates of VAT on different goods and services.