The Ghana Revenue Authority (GRA) has directed banks to charge 20% VAT on qualifying cross-border digital services from October 15, 2026, increasing the cost of subscriptions to platforms such as Netflix, Spotify, and ChatGPT where the applicable taxes are not already included.
The directive requires banks to collect and remit applicable taxes on qualifying digital transactions made with Ghana-issued bank cards.
The affected services span video and music streaming platforms such as Netflix, Spotify, Disney+, Showmax, and beIN Sports; productivity software including Microsoft 365, Adobe, Zoom, and Google Workspace; and artificial intelligence tools such as ChatGPT.
Other services potentially covered include cloud computing platforms such as Amazon Web Services (AWS), Google Cloud, and DigitalOcean, as well as online advertising services offered by Google, Meta, TikTok, and LinkedIn.
The GRA also noted that qualifying payments for online learning, digital gaming, VPN and cybersecurity services, travel bookings, and business communication tools may also attract the tax, depending on the nature of the transaction and applicable rules.
According to the authority, the October 15 rollout does not introduce a new tax on digital services, but instead changes the collection mechanism ,placing greater responsibility on participating banks and payment service providers to collect applicable taxes when qualifying transactions are processed, and remit them to the GRA.
The legal framework is the Value Added Tax Act, 2025 (Act 1151), which took effect on January 1, 2026. The effective 20% rate comprises 15% Value Added Tax (VAT), a 2.5% National Health Insurance Levy (NHIL), and a 2.5% Ghana Education Trust Fund (GETFund) Levy.
The arrangement is intended to improve compliance and strengthen revenue mobilisation from cross-border digital transactions by collecting applicable taxes at the point of payment.
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