Ghanaian banks, mobile money operators and payment firms will begin collecting a 20 per cent tax on payments for foreign digital services, including Netflix, Spotify and ChatGPT, from Thursday, October 15.
The measure is not a new tax but a change in how the government collects existing charges on electronically supplied services from non-resident businesses.
Under the arrangement, financial institutions will deduct the tax when customers pay for eligible foreign digital services using Ghana-issued bank cards, mobile money accounts or digital wallets, before remitting the proceeds to the Ghana Revenue Authority (GRA).
The 20 per cent charge comprises 15 per cent Value Added Tax, a 2.5 per cent National Health Insurance Levy and a 2.5 per cent GETFund Levy.
Ghana has required foreign digital service providers to charge VAT since 2022. However, the GRA is now expanding collection at the payment stage to improve compliance and recover revenue it believes has been missed.
The measure covers streaming platforms such as Netflix, Spotify, Disney+ and Showmax, as well as productivity and communication services including Microsoft 365, Adobe, Zoom, Google Workspace and ChatGPT.
Other potentially affected transactions include payments for cloud computing, digital advertising on platforms such as Google, Meta, TikTok and LinkedIn, online learning, gaming, virtual private networks and travel bookings.
Both registered and unregistered foreign providers fall within the scope of the collection framework.
However, some transactions, including SWIFT transfers, payments made with foreign-issued cards, cryptocurrency transactions, gift cards and certain corporate invoices, may not be subject to automatic deduction at the point of payment.
The GRA has indicated that these exclusions do not necessarily remove the underlying tax obligation, as other collection mechanisms may apply.
Free access to services such as Facebook and WhatsApp will not attract the charge, while domestic transactions are not affected by the measure.
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Some banks have also informed customers that the deduction is a statutory tax obligation rather than a fee imposed by the financial institutions.
The GRA says the move is intended to address a gap between the revenue currently collected from foreign digital businesses and the amount it believes the sector should generate.
About 167 non-resident e-commerce companies are registered with the authority, generating approximately GH¢43 million monthly, or an estimated GH¢515 million annually.
GRA Commissioner-General Anthony Sarpong has said data from 2025 suggested the system could have generated more than GH¢2.5 billion that year.
The collection plan was previously expected to begin in August following a three-month pilot, but its implementation was postponed until October 15.
The initiative forms part of the GRA’s 2026 compliance drive and reflects the government’s position that foreign digital businesses should meet tax obligations similar to those imposed on local companies providing comparable services.
For consumers, the new collection process means eligible subscriptions and online purchases could cost more where the applicable tax is added to the payment.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
