What digital services will be subject to the 20% tax?

The tax applies to a wide range of cross-border digital services including streaming platforms, productivity tools, AI services, cloud platforms, online advertising, and online learning.

Is this a new tax being introduced in Ghana?

No, this is not a new tax; it is a change in the collection method for existing taxes like VAT, NHIL, and GETFund Levy on digital services.

Ghanaian Banks to Collect 20% Tax on Digital Services from October 15

A new directive requires banks to collect Value Added Tax, National Health Insurance Levy, and Ghana Education Trust Fund Levy on cross-border digital services, impacting subscriptions and business tools.

2026-10-14 · Updated 2026-10-14

Starting October 15, 2026, commercial banks in Ghana will begin collecting a 20% tax on various cross-border digital services. This tax will be applied at the point of payment for services like Netflix, Spotify, ChatGPT, and other digital subscriptions when paid for using Ghana-issued bank cards.

The 20% tax is composed of a 15% Value Added Tax (VAT), a 2.5% National Health Insurance Levy (NHIL), and a 2.5% Ghana Education Trust Fund (GETFund) Levy. For instance, a GH¢1,000 monthly subscription will now cost GH¢1,200, with GH¢200 allocated to these statutory charges.

This measure, based on the Value Added Tax Act, 2025 (Act 1151), does not introduce a new tax but changes the collection mechanism. Previously, the onus was on foreign providers, but now banks and payment service providers are mandated by the Ghana Revenue Authority (GRA) to collect and remit these taxes.

The scope of affected services is broad, including streaming platforms, productivity software, AI tools, cloud services, online advertising, online learning, gaming, VPN services, and travel bookings. Businesses relying on these foreign digital tools may also experience increased operational costs.

Financial institutions have begun informing customers about this upcoming charge, emphasizing that it is a statutory obligation and not a bank-imposed fee. The success of this new collection system hinges on clear communication from banks and payment providers regarding the tax application and its breakdown at checkout.

FAQ

What digital services will be subject to the 20% tax?: The tax applies to a wide range of cross-border digital services including streaming platforms, productivity tools, AI services, cloud platforms, online advertising, and online learning.
Is this a new tax being introduced in Ghana?: No, this is not a new tax; it is a change in the collection method for existing taxes like VAT, NHIL, and GETFund Levy on digital services.