Ghana VAT 15% with NHIL and GETFund: 2026 update
The standard VAT rate is 15%. Since 1 January 2026, NHIL 2.5% and GETFund 2.5% apply on the same base and the COVID-19 levy no longer applies.
Ghana's standard VAT rate is 15%. Before 2026, an invoice also carried NHIL 2.5%, GETFund 2.5% and a 1% COVID-19 levy, which gave an effective rate of about 21.9% because of the way the levies were added first. From 1 January 2026, under the Value Added Tax Act, 2025 (Act 1151), the COVID-19 levy is abolished, VAT, NHIL and GETFund are all calculated on the same selling price, and the effective rate is 20%. The GRA also says NHIL and GETFund are now deductible as input tax for VAT-registered taxpayers. Old templates that show a 1% COVID line are out of date.
- VAT: 15% standard rate.
- NHIL 2.5% and GETFund levy 2.5%: calculated on the same base, now deductible as input tax per the GRA.
- COVID-19 levy 1%: abolished from 1 January 2026.
- Effective rate: 20% (before 2026 it was about 21.9%).
How it works
Check whether you must register. The GRA states a GHS 750,000 registration threshold for businesses dealing in goods from 2026 (it was GHS 200,000). Confirm your own case, especially for services.
Calculate all three taxes on the net selling price. Example: net GHS 1,000, NHIL GHS 25, GETFund GHS 25, VAT GHS 150, total GHS 1,200.
Show NHIL, GETFund and VAT as separate lines on the invoice. In 4invoices you add each as a line with its own tax rate.
For supplies made before 1 January 2026, the older rules, including the COVID-19 levy and cascading calculation, applied at the time of supply.
File your return by the last working day of the month after the period, on the GRA portal.
Legal framework
- Value Added Tax Act, 2025 (Act 1151), effective 1 January 2026.
- Ghana Revenue Authority (GRA) VAT page, gra.gov.gh.
Frequently asked questions
Is the effective VAT rate in Ghana still 21.9%?
No. That figure applied when the 1% COVID-19 levy existed and levies were added before VAT. From 1 January 2026 the GRA describes an effective rate of 20% (15% + 2.5% + 2.5%).
Can a buyer recover NHIL and GETFund?
The GRA says NHIL and GETFund are now deductible as input tax for VAT-registered taxpayers. Confirm how it applies to your purchases with the GRA or a tax adviser.
What turnover triggers VAT registration in Ghana?
The GRA states GHS 750,000 for businesses dealing in goods from 2026, up from GHS 200,000. For services, confirm the threshold with the GRA.
Does 4invoices calculate Ghana VAT and levies automatically?
No. You enter the tax rate on each invoice line yourself (for example 15%, 2.5% and 2.5%). 4invoices does not check the rates against the GRA, does not file returns and does not issue GRA-validated invoices.