Ghana VAT reform 2026: COVID levy abolished, effective rate 20%
What changed on 1 January 2026 under the Value Added Tax Act, 2025 (Act 1151), and how to show the new lines on a Ghana invoice.
From 1 January 2026 the COVID-19 Health Recovery Levy is no longer charged in Ghana. The standard VAT rate stays at 15%. The NHIL (2.5%) and the GETFund levy (2.5%) stay, so the total effective rate is 20%, down from 21.9%. Under the VAT Act 2025 (Act 1151), NHIL and GETFund are no longer cut off from the VAT base and can be claimed as input tax. The VAT flat rate scheme is also abolished. Older invoice templates that show a 1% COVID levy line are out of date.
- VAT: 15% standard rate, unchanged.
- NHIL 2.5% and GETFund levy 2.5%: still charged, now recoverable as input tax.
- COVID-19 levy 1%: abolished from 1 January 2026.
- Effective rate: 20% on the net value (15% + 2.5% + 2.5%).
How it works
Remove the COVID-19 levy line from every invoice template dated 1 January 2026 or later.
Keep three separate lines: NHIL at 2.5%, GETFund levy at 2.5% and VAT at 15%. The GRA says computer-generated invoices should show a separate line for each.
Worked example: net GHS 1,000. NHIL is GHS 25. GETFund is GHS 25. VAT at 15% is GHS 150. The total is GHS 1,200, which is 20% on the net.
Check old open invoices and credit notes. Supplies made before 1 January 2026 follow the rules that applied at the time of supply.
Update your price lists. A price quoted as 'net plus 21.9%' is now net plus 20%.
Legal framework
- Value Added Tax Act, 2025 (Act 1151), effective 1 January 2026.
- COVID-19 Health Recovery Levy Repeal Act, 2025.
- Ghana Revenue Authority (GRA) VAT page, gra.gov.gh.
Frequently asked questions
Is the COVID-19 levy still charged in Ghana?
No. It has not been charged since 1 January 2026. The Health Recovery Levy was repealed together with the new VAT Act. Do not add a 1% line to new invoices.
What is the effective VAT rate in Ghana in 2026?
It is 20% on the net value: VAT 15% plus NHIL 2.5% plus GETFund levy 2.5%. Before 2026 it was 21.9% with the COVID levy included.
Can I now claim NHIL and GETFund as input tax?
Reports on Act 1151 say the two levies are now deductible as input tax. Confirm how it applies to your purchases with the GRA or a tax adviser before you change your VAT return.
Does 4invoices apply the Ghana tax rules for me?
No. 4invoices lets you add a tax rate to each invoice line, so you can enter 15%, 2.5% and 2.5% as separate lines. You choose the rates. It does not check them against the GRA, does not file returns and does not issue GRA-validated E-VAT invoices.