The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Associations (GUTA) have reached important agreements to ensure a smooth transition to the newly enacted Value Added Tax Act, 2025 (Act 1151).
The accord follows a joint consultation held on Wednesday, January 7, 2026, aimed at addressing concerns of traders, particularly those previously under the VAT Flat Rate Scheme.
Under the agreed arrangements, all eligible taxpayers, including GUTA members, will charge and account for VAT at the effective rate of 20%—covering VAT, National Health Insurance Levy (NHIL), and GETFund Levy—through the end of the first quarter of implementation. This interim measure is designed to ease the rollout of the new system while allowing GUTA to provide feedback on practical challenges faced by traders.
To tackle sector-specific issues, a joint technical team comprising GRA and GUTA representatives will be formed. The team will focus on VAT record-keeping, input VAT claims, and VAT calculations, and will provide recommendations for further review.
Additionally, nationwide education and sensitization programs will be intensified to guide traders through the transitional process and ensure compliance with the new VAT framework.
The GRA pledged full support to traders moving away from the Flat Rate Scheme, while GUTA urged its members to comply with the new law. Both organizations reaffirmed their commitment to continued dialogue, prioritizing the interests of traders, consumers, and national development.
