The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Associations (GUTA) have agreed on a transition plan to ensure the smooth implementation of the newly enacted Value Added Tax Act, 2025 (Act 1151).
The agreement was reached during a joint consultation meeting held on Wednesday, January 7, 2026, following concerns raised by traders—particularly those previously operating under the VAT Flat Rate Scheme.
Under the interim arrangement, all eligible taxpayers, including GUTA members, will continue to charge and account for VAT at an effective rate of 20 per cent, made up of VAT, the National Health Insurance Levy (NHIL), and the GETFund Levy, until the end of the first quarter of the new law’s implementation.
The temporary measure is expected to ease the transition and allow GUTA to provide feedback to the GRA on operational challenges encountered by traders under the new system.
To address sector-specific concerns, the two bodies will set up a joint technical team to examine issues relating to VAT record-keeping, input VAT claims, and VAT calculations, and to make recommendations for further review.
Additionally, nationwide education and sensitisation programmes will be intensified to guide traders through the transition and promote compliance with the new VAT regime.
The GRA reaffirmed its commitment to supporting traders moving away from the Flat Rate Scheme, while GUTA urged its members to comply fully with the provisions of the new law. Both organisations pledged to maintain continuous engagement in the interest of traders, consumers, and economic progress.
