GRA Clarifies GH¢750,000 VAT Turnover Threshold for Goods Only, Exempting Service Providers

The Ghana Revenue Authority (GRA) has issued a clarification regarding the GH¢750,000 annual VAT turnover threshold, stating that it applies exclusively to businesses that supply goods, thereby excluding service providers. Dr. Dominic Naab, the Acting Head of the GRA’s Strategy and Research Department, made this announcement during a public lecture focused on upcoming VAT reforms set to take effect on January 1, 2026. He emphasized that all service providers are required to register for VAT, irrespective of their revenue levels. Furthermore, businesses that fall below the specified turnover threshold must continue to charge VAT at the standard rate of 20% until they are officially deregistered by the Commissioner-General. These VAT reforms are designed to enhance revenue mobilization, simplify compliance processes, and improve the overall clarity of the tax system in Ghana.