Baku:The Ghana Revenue Authority (GRA) has clarified that its newly implemented automated system for tracking taxes on digital services is not introducing a new tax but is designed to enhance the collection of existing Value Added Tax (VAT).
According to Ghana Web, GRA Commissioner-General Anthony Sarpong, in an interview on Joy FM, explained that the VAT on digital services provided by foreign companies to consumers in Ghana has been in effect since 2013. He emphasized that the new system aims to address challenges in tracking transaction volumes and verifying tax payments by these companies.
The automated system will ensure that the 20% tax component is directly collected by the government at the point of payment, without increasing subscription prices for services like Netflix, Google, and Amazon. This mechanism separates the tax from customer payments, remitting the remainder to the service providers.
Sarpong highlighted that the initiative will improve compliance among established corporate remitters and bring approximately 100 newly identified digital platforms into the tax net. The system covers various digital payment methods, including bank cards, mobile money, and standing orders, allowing tax collection on digital services to be streamlined.
The focus remains on digital services as imported physical goods are already subject to customs procedures and duties upon entering Ghana. The Commissioner-General reiterated that this system is aimed at enhancing tax compliance and collection efficiency, not imposing additional taxes on consumers.