Ghana’s VAT digitalisation efforts highlighted at AfDB Regional Seminar

Ghana’s efforts to modernise its Value Added Tax (VAT) system through digital technology have been highlighted at a regional seminar organised by the African Development Bank Group (AfDB) to promote efficient tax administration and strengthen domestic revenue mobilisation across West Africa.

The hybrid seminar, themed “Empowering Smarter VAT Compliance: Innovations and Regional Collaboration in West Africa,” was held at the AfDB headquarters in Abidjan, Côte d’Ivoire, with support from the Government of Japan through the Policy and Human Resource Development Grant (PHRDG).

The event brought together more than 230 participants from governments, regional institutions, the private sector and the African Development Bank, both physically and virtually, to discuss strategies for improving VAT compliance and tax system efficiency in the region.

Participants noted that amid growing fiscal pressures and declining external aid flows, strengthening domestic resource mobilisation has become increasingly important for financing development across Africa.

VAT remains one of the most significant sources of tax revenue in many African countries, accounting for approximately 30 percent of total tax collections. However, its efficiency remains relatively low, averaging around 36 percent across the continent.

Opening the seminar, AfDB Director General for West Africa, Lamin Barrow, described VAT digitalisation as more than a technical reform, emphasizing its role in improving transparency, enhancing trust between taxpayers and governments, and boosting revenue collection.

Representing the Government of Japan, Tomoki Nakai, Executive Director for Japan at the African Development Bank Group, reaffirmed his country’s support for domestic resource mobilisation initiatives through the PHRDG programme.

He stressed the importance of strong institutions, effective regulatory frameworks and collaboration among stakeholders in driving successful VAT digitalisation reforms.

The seminar also featured presentations from several countries implementing digital tax systems.

Representatives from Côte d’Ivoire highlighted ongoing reforms, including the deployment of the E-Impôts platform and electronic invoicing systems aimed at improving tax compliance and transaction traceability.

Participants reviewed lessons from East African countries discussed during a similar AfDB seminar held in Nairobi in 2025, where digital VAT systems have contributed to increased revenues, improved compliance and stronger transaction monitoring.

The African Development Bank noted that Ghana is leveraging digital tools and data analytics to reduce VAT leakages, particularly in the area of import monitoring.

Across the region, countries are pursuing VAT digitalisation reforms at varying stages. Nigeria is rolling out its National Revenue Service Merchant Buyer Solution (NRSMBS), a real-time electronic invoicing platform initially targeting large taxpayers.

Togo has introduced online filing and payment systems through its Revenue Authority to strengthen transparency and tax control, while Senegal continues to expand its ETAX platform despite challenges relating to system capacity and interoperability.

The seminar also underscored the importance of regional cooperation in improving tax administration.

The ECOWAS Commission revealed that VAT currently contributes about 31.4 percent of tax revenues across the region and highlighted a pilot project with Sierra Leone aimed at improving VAT collection from cross-border digital transactions.

The West African Tax Administration Forum (WATAF) also outlined its efforts to support fiscal reforms through capacity-building initiatives, the development of a regional tax data platform and stronger coordination between tax and customs authorities.

Private sector participants emphasized that successful VAT digitalisation must be supported by systems that are accessible, predictable and responsive to business needs, particularly for small and medium-sized enterprises (SMEs).

They identified several challenges, including compliance costs, poor connectivity, system interoperability issues, delays in VAT refunds and the need to strengthen taxpayer trust and digital literacy.

Despite the progress made, participants acknowledged that limited digital infrastructure, technological constraints and capacity gaps among taxpayers continue to hinder the full implementation of digital tax systems in some countries.

Discussions also explored the future role of emerging technologies such as artificial intelligence in improving tax administration, strengthening compliance monitoring and enhancing revenue collection.

Participants stressed the need for appropriate legal frameworks, data protection measures and country-specific implementation strategies to ensure the effective adoption of digital technologies in tax administration across West Africa.