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Traders to charge 20% VAT during transition as GRA and GUTA agree on new VAT law

by theoverseeronline.com
January 7, 2026
in Business, Economy, National
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GRA halts implementation of GH¢1 fuel levy
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The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) have outlined steps to ensure a smooth transition under the Value Added Tax Act, 2025 (Act 1151).

The agreement came after a joint consultation meeting in Accra on Wednesday, January 7, 2026, aimed at addressing concerns from traders, especially those who previously operated under the VAT Flat Rate Scheme.

The meeting also focused on transitional challenges related to the rollout of the VAT reforms.

As part of the arrangement, all eligible taxpayers, including GUTA members, are required to charge and account for VAT at the effective rate of 20 percent, which covers VAT, NHIL, and the GETFund Levy, “until the end of the first quarter of implementation.”

The approach is intended to give traders time to adjust while providing feedback to GRA.

A joint technical team of representatives from both organisations will tackle sector-specific issues such as VAT record keeping, input VAT claims, and VAT calculation, and will make recommendations for further review.

The two bodies also agreed that “education and sensitisation programmes will be intensified nationwide” to guide traders through the transitional arrangements and ensure compliance.

GRA reassured traders of its full support during the transition, while GUTA encouraged its members to comply with the new law.

Both organisations reaffirmed their commitment to ongoing dialogue, “prioritising the interest of traders, consumers, and national development.”


Read below the statement

GRA-GUTA joint release on implementation of VAT ACT 2025 (ACT 1151)Download
Tags: 20%Ghana NewsGRAGUTAVAT Law
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