The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) have agreed on a set of measures aimed at ensuring a seamless implementation of the Value Added Tax Act, 2025 (Act 1151).

The agreement was reached during a joint consultative meeting held in Accra on Wednesday, January 7, 2026, where discussions focused on the implications of the new VAT regime, particularly for traders previously operating under the VAT Flat Rate Scheme.

As part of the agreed arrangements, all qualifying taxpayers, including members of GUTA, will apply and account for VAT at an effective rate of 20 per cent. The rate, which comprises VAT, the National Health Insurance Levy (NHIL), and the GETFund Levy, will remain in force until the end of the first quarter of the implementation period, in line with the provisions of the law.

To address operational and sector-specific concerns, the two institutions will establish a joint technical committee made up of representatives from both GRA and GUTA. The committee will work on issues such as VAT record-keeping, input VAT claims, and calculation procedures, and will also propose recommendations for improving the system going forward.

Additionally, the GRA and GUTA agreed to intensify nationwide education and sensitisation programmes to support traders during the transition and promote full compliance with the new VAT framework.

The GRA reaffirmed its commitment to working closely with traders and providing the necessary support to ease the transition, while GUTA encouraged its members to adhere to the new tax regime. Both parties underscored the importance of sustained engagement and cooperation in the interest of traders, consumers, and national development.