The Ghana Revenue Authority (GRA) has clarified that the GH¢750,000 threshold introduced under the new Value Added Tax (VAT) reforms applies exclusively to businesses supplying goods and does not extend to service providers.
The clarification was given on Friday, January 2, 2026, during a public lecture following the implementation of the VAT reforms, which officially took effect on January 1, 2026.
Speaking at the event, the Acting Head of the GRA’s Strategy and Research Department, Dr. Dominic Naab, explained that while service providers are exempt from the threshold requirement, they are still legally required to register under the new VAT system. According to him, the revised VAT framework is aimed at simplifying compliance procedures and improving efficiency across various sectors of the economy.
“It is important for us to indicate that the GH¢750,000 threshold is only applicable to the supply of goods. For the supply of services, there is no threshold. So, if you provide services, the threshold does not matter. What this means is that, by law, the Commissioner-General is required to ensure that every person who provides services is registered,” Dr. Naab stated.
Dr Naab further advised businesses that fall below the VAT registration threshold but have not yet been formally deregistered under the new VAT regime to continue charging VAT at the standard rate of 20 per cent. He stressed that this rate excludes the 1 percent COVID-19 levy and the 3 percent VAT flat rate.
“With the advent of this new Act, businesses can no longer charge the VAT flat rate. If the Commissioner-General has not deregistered you from the system, then you remain a VAT-registered person. In that case, you should continue charging VAT at the standard rate until you receive official communication from the Commissioner-General either to deregister you or to confirm your continued registration,” he explained.
The GRA maintains that the reforms are part of broader efforts to enhance revenue mobilization while ensuring fairness and clarity within the tax system.
