The Ghana Revenue Authority (GRA) has identified about 100 additional non-resident digital service providers that are allegedly failing to charge and remit applicable taxes on services supplied to consumers in Ghana.
The authority plans to progressively bring the identified companies into compliance with the country’s digital tax collection system as part of efforts to strengthen tax administration and ensure that businesses operating in Ghana’s digital economy meet their statutory obligations.
The development follows the introduction of measures requiring foreign-based companies providing qualifying digital services to Ghanaian consumers to account for applicable taxes on their transactions.
According to information released by the GRA, approximately 92 non-resident digital service providers have already registered under the system and are charging and remitting the required taxes. The newly identified companies are expected to be engaged as the authority works to expand compliance across the sector.
The applicable tax rate on qualifying digital services is 20 per cent, comprising 15 per cent Value Added Tax (VAT), a 2.5 per cent National Health Insurance Levy (NHIL) and a 2.5 per cent Ghana Education Trust Fund (GETFund) Levy.
The GRA has explained that the arrangement is intended to improve the collection of existing statutory taxes rather than introduce a new tax or increase the applicable rates.
The services covered include streaming subscriptions, cloud computing, online gaming and digital advertising, among other qualifying services purchased by consumers in Ghana.
Payments made through Ghana-issued bank cards, mobile money and other eligible digital payment channels may fall within the collection framework, depending on the nature of the transaction and the applicable tax rules.
The initiative is intended to address compliance gaps involving foreign-based digital businesses that provide services to Ghanaian consumers. As more commercial activities move online, tax authorities have faced challenges in monitoring cross-border transactions and ensuring that companies account for taxes due on their services.
Under the collection arrangement, participating financial institutions and payment service providers are expected to help identify and remit applicable taxes at the point of payment. The system is designed to improve oversight of digital transactions and reduce reliance on foreign service providers to voluntarily declare and transfer taxes due in Ghana.
Consumers could notice tax charges on payments to digital platforms that are brought into compliance. However, customers who are already paying the applicable taxes should not be charged twice on the same transaction.
The GRA has also clarified that the digital services tax collection system is separate from the taxation of imported physical goods, which remain subject to existing Customs procedures.
The identification of the additional providers marks another step in the authority’s efforts to widen tax compliance within Ghana’s digital economy. The effectiveness of the initiative will depend on how successfully the GRA engages the identified companies, secures their compliance and ensures that the required taxes are properly accounted for.
As digital services continue to expand, the authority’s approach is expected to remain an important part of efforts to protect government revenue while ensuring that tax obligations are applied consistently to qualifying transactions.
Source: Thepressradio.com
