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GRA To Charge 20 Percent Tax On Digital Services

The Ghana Revenue Authority (GRA) has announced that commercial banks will begin collecting a 20% tax on qualifying cross-border digital services effective Wednesday, 15th October, 2026. The move is expected to increase subscription costs for Ghanaian users of platforms such as Netflix, Spotify, YouTube Premium, Apple, Google, and ChatGPT where applicable taxes are not already included.

According to the GRA, the tax forms part of the implementation of Ghana’s Value Added Tax (VAT) on non-resident digital services. Under the new system, banks acting as collecting agents will deduct 20% VAT at the point of payment when customers use Ghanaian-issued cards to pay for foreign digital services. The amount will then be remitted to the GRA on behalf of the foreign service provider.

The Authority explains that the measure is aimed at ensuring tax equity between local and foreign digital service providers. While Ghanaian businesses already charge VAT on their services, many foreign platforms have been providing services to Ghanaians without charging VAT, creating an uneven playing field. The new collection mechanism will apply only to services where the provider has not already charged Ghanaian VAT directly.

Consumers have expressed concern on social media that monthly subscriptions could rise sharply. For example, a $10 Netflix or Spotify payment could attract an additional $2 tax, bringing the total deduction from bank accounts to $12. The GRA has advised customers to check their invoices to confirm whether VAT is already included before the bank applies the charge to avoid double taxation.

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Commercial banks are expected to begin full compliance from midnight of October 15, 2026. The GRA says it has engaged the Ghana Association of Bankers and major payment platforms to ensure smooth implementation. Foreign digital companies that already have mechanisms to charge and remit Ghana VAT directly will be exempted from the bank collection to prevent double charging.

The announcement aligns Ghana with global trends where countries including Nigeria, Kenya and South Africa have introduced similar taxes on the digital economy. The GRA says the revenue will help support national development while ensuring fairness in Ghana’s tax system.

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Author: Stella Sunu • Published on Howedey.com – Wednesday, 15th October, 2026

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