The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) have issued a joint communiqué outlining a collaborative framework for the implementation of the Value Added Tax Act, 2025 (Act 1151), following high-level consultations on Wednesday, January 7, 2026.
The meeting, held at the GRA headquarters at the Ministries, sought to address mounting concerns from the trading community regarding the transition from the now-abolished VAT Flat Rate Scheme to a unified standard regime.
Key Outcomes of the Consultations
To ensure a stable economic environment during the rollout, both parties agreed on the following measures:
• Fixed Tax Rate for Q1: All eligible taxpayers, including GUTA members, will charge an effective VAT rate of 20% (which includes the National Health Insurance Levy and GETFund Levy) through the end of March 2026.
• Joint Technical Team: A specialized team featuring representatives from both GRA and GUTA will be formed to tackle sector-specific hurdles. Their focus will include refining VAT record-keeping, streamlining input VAT claims, and simplifying calculation methods.
• National Sensitisation: The GRA has pledged to intensify nationwide education programs to guide traders through the new compliance requirements.
The GRA emphasised a “supportive and collaborative” stance, particularly for traders previously under the simplified flat rate system. While the new law increases the registration threshold to GHC750,000 to exempt many micro-enterprises, larger traders must now adapt to the standard “input-output” tax mechanism.
GUTA encouraged members to comply with the new law while the technical team works on long-term recommendations.
Both organisations reaffirmed that this partnership is vital for national development and the protection of consumer interests.
Both organisations reaffirmed that this partnership is vital for national development and the protection of consumer interests.
Source: 3news
