Ghana Revenue Authority implements real-time VAT for digital services

The Ghana Revenue Authority (GRA) has introduced a Real-Time Value Added Tax (RTVAT) framework to capture tax from cross-border digital services at the point of payment. The initiative, launched on September 22, 2026, aims to close a significant revenue gap caused by a digital economy that has outpaced traditional tax collection methods.

The RTVAT framework, powered by the Sentinel system, applies to transactions where the merchant is non-resident, the service is supplied electronically, and the payment instrument—such as a mobile money account, digital wallet, or card—is issued in Ghana. Targeted services include online streaming subscriptions like Netflix and Amazon Prime, as well as cloud storage services.

While the number of registered non-resident e-commerce businesses in Ghana has grown from a small group in 2022 to approximately 167, the GRA notes that a substantial collection gap remains. Currently, these businesses mobilize an average of GH¢43 million monthly, contributing an estimated GH¢515 million in VAT annually. GRA officials have clarified that RTVAT is not a new tax, but a mechanism to ensure the timely and transparent collection of existing VAT due on digital transactions.