The Ghana Revenue Authority (GRA) has dismissed claims that it has introduced a new tax on Netflix, Google and other digital subscription services, clarifying that the updated digital VAT system does not introduce any new tax or increase existing rates.
According to the Authority, the effective tax rate remains at 20%, comprising 15% Value Added Tax (VAT), the National Health Insurance Levy (NHIL) and the GETFund Levy.
The GRA explained that the changes are intended to improve tax collection from non-resident digital service providers, including Netflix and Google, rather than impose additional taxes on consumers.
In an official statement, the Authority stressed that the system is designed to enhance compliance and transparency while preventing consumers from being charged twice on the same transaction.
It also urged consumers who notice any inconsistent or questionable charges on their digital subscriptions to contact the GRA for clarification.
Read the GRA’s full statement below:
“Accra, 14 October 2026 – The Ghana Revenue Authority (GRA) has taken note of recent media reports and public discussions suggesting that the introduction of a new digital Value Added Tax (VAT) collection system will result in an additional 20% tax on subscriptions and payments for digital services such as Netflix, Google, Amazon and other international digital platforms.
The Authority wishes to clarify that the new system does not introduce a new tax or increase the existing VAT rate. Rather, it is intended to improve the collection and accounting of taxes already applicable to digital services supplied by non-resident companies to consumers in Ghana,
For the avoidance of doubt, the GRA wishes to clarify the following.
• No new tax is being introduced. VAT on electronically supplied services by non-resident providers is an existing statutory obligation under Ghana’s VAT legislation. The new system is an improvement in the mechanism for collecting taxes already due to the State
There is no additional 20% tax. The applicable effective tax rate remains 20%, comprising 15% VAT, 2.5% National Health Insurance Levy (NHIL) and 2.5% Ghana Education Trust Fund (GETFund) Levy. The new system does not increase these rates
‣ Consumers already paying VAT should not be charged again. Approximately 92 non-resident digital service providers are currently registered and remitting VAT to the GRA. Where the applicable taxes are already included in subscription prices, the introduction of the new collection system will not result in an additional charge on the same transaction
Other digital service providers will be brought into compliance. The Authority has identified approximately 100 additional non-resident digital service providers that are not currently charging and remitting the applicable taxes. These providers will be progressively brought into the tax net. Consumers using these services may therefore see the applicable statutory taxes reflected in their payments where they were previously not charged.
The GRA further added, “ The new system will improve transparency and accountability. Under the existing arrangement, the GRA relies largely on foreign digital service providers to declare their transactions and remit the applicable taxes. The new system will enable the tax component of qualifying transactions to be identified and collected at the point of payment through participating financial institutions and payment service providers, improving compliance and ensuring that revenue due to the State is properly accounted for.
The system applies to digital services, not imported physical goods. It covers qualifying electronically supplied services, including streaming subscriptions, cloud computing, online gaming and digital advertising, paid for through Ghana-issued payment instruments such as bank cards, mobile money and other digital payment platforms. Physical goods purchased from international e-commerce platforms remain subject to applicable Customs procedures.
The GRA recognises the importance of ensuring that consumers are adequately informed about applicable taxes and are not subjected to duplicate taxation. The Authority will therefore continue to engage banks, payment service providers and digital service providers to ensure appropriate safeguards against duplicate collection and clear communication of applicable charges.
Members of the public who observe charges that appear inconsistent with this clarification are encouraged to contact the Authority through its official channels for clarification and redress.
The GRA wishes to emphasise that the introduction of a new tax must not be confused with improvements in the collection of an existing tax. The objective of the new system is to strengthen compliance, promote fairness between resident and non-resident service providers, and ensure that taxes already required by law are accurately collected and duly accounted for
The Authority remains committed to the fair, transparent and efficient administration of Ghana’s tax laws while leveraging technology to improve domestic revenue mobilisation and protect the interests of taxpayers”.
See the statement below:
@ghnow_ Part 2: National Security officers have arrested a group of people allegedly involved in illegal sand winning at Sewua along the Accra–Kumasi Highway. The arrests follow the grading of the road’s right of way by military engineers ahead of the commencement of construction works. #GHNow #GhanaNews #fyp ♬ original sound – GHnow
@ghnow_ Part 1: National Security officers have arrested a group of people allegedly involved in illegal sand winning at Sewua along the Accra–Kumasi Highway. The arrests follow the grading of the road’s right of way by military engineers ahead of the commencement of construction works. #GHNow #GhanaNews #fyp ♬ original sound – Nkz_Lyrics & Caption – DJ NKAY HUB
