The Ghana Revenue Authority (GRA) has clarified that the GH¢750,000 annual VAT turnover threshold applies solely to businesses engaged in the supply of goods and does not extend to service providers.

According to CitiNewsroom.com, the Acting Head of the GRA’s Strategy and Research Department, Dr Dominic Naab, made this clarification during a public lecture following the implementation of the country’s VAT reforms, which took effect on January 1, 2026.

Dr Naab explained that under the revised VAT regime, all service providers are required by law to register for VAT, irrespective of their annual turnover.

“It is important to note that the GH¢750,000 threshold applies only to the supply of goods. For the supply of services, there is no threshold. So, if you provide services, the threshold does not apply,” he stated.

This, he said, means the Commissioner-General of the GRA is legally mandated to ensure that every person providing taxable services is registered for VAT, regardless of revenue levels.

Dr Naab also offered guidance to businesses that supply goods but record annual turnover below the GH¢750,000 threshold. He indicated that such businesses must continue charging VAT at the standard rate of 20 percent until they receive official notification from the Commissioner-General confirming their deregistration.

He further clarified that the standard VAT rate excludes the additional one percent COVID-19 levy and noted that the former three percent VAT flat rate scheme has been abolished under the new VAT Act.

“With the introduction of the new Act, businesses can no longer charge the VAT flat rate. If the Commissioner-General has not formally deregistered you, then you remain a VAT-registered person,” he said.

“In that situation, you are required to continue charging VAT at the standard rate until you are officially informed either of your deregistration or your continued registration,” Dr Naab added.

The GRA said the VAT reforms form part of a broader strategy to strengthen domestic revenue mobilisation, simplify tax compliance, enhance administrative efficiency, and promote fairness and transparency within Ghana’s tax system.