Acting Head of the GRA’s Strategy and Research Department, Dr Dominic Naab
The Ghana Revenue Authority (GRA) has clarified that the GH¢750,000 annual VAT turnover threshold applies exclusively to businesses supplying goods, not to service providers.
According to a report by CitiNewsroom.com, the Acting Head of the GRA’s Strategy and Research Department, Dr Dominic Naab, explained this during a public lecture following the implementation of the VAT reforms, which officially took effect on January 1, 2026.
“It is important for us to indicate that the GH¢750,000 threshold is only applicable to the supply of goods. For the supply of services, there is no threshold. So, if you provide services, the threshold does not matter,” he stated.
He explained that this means the Commissioner-General is legally required to ensure “every person providing services registers for VAT”, regardless of their revenue.
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Dr Naab also provided critical transitional guidance for goods-supplying businesses with annual turnover below the GH¢750,000 mark.
He advised that any business not yet formally deregistered by the Commissioner-General must continue charging VAT at the standard rate of 20%.
He clarified that this standard rate excludes the additional 1% COVID-19 levy and that the previous 3% VAT flat rate scheme is no longer applicable under the new Act.
“With the advent of this new Act, businesses can no longer charge the VAT flat rate. If the Commissioner-General has not deregistered you from the system, then you remain a VAT-registered person.
“In that case, you should continue charging VAT at the standard rate until you receive official communication from the Commissioner-General either to deregister you or to confirm your continued registration,” Dr Naab explained.
The GRA maintains that these VAT reforms are part of a broader national effort to enhance revenue mobilization, simplify compliance procedures, improve administrative efficiency, and ensure greater fairness and clarity within Ghana’s tax system.
ID/BAI
