GRA and GUTA Forge Agreement on VAT Act 2025 Transitional Measures

On January 7, 2026, the Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) convened in Accra to establish transitional measures for the implementation of the new Value Added Tax Act, 2025 (Act 1151). This agreement is particularly significant for traders who were previously operating under the VAT Flat Rate Scheme. Under the new regulations, all eligible taxpayers, including GUTA members, will be required to charge a VAT rate of 20% until the end of the first quarter of the implementation period.

To facilitate a smooth transition, a joint technical team has been formed to tackle challenges related to VAT record keeping and compliance. Additionally, both organizations have committed to enhancing educational programs nationwide to support traders in adapting to the new VAT regime. GRA and GUTA have underscored the importance of compliance and maintaining open lines of communication to ensure the effective rollout of the new tax framework.