AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
No. Ghana's VAT Flat Rate Scheme was abolished from 1 January 2026 by the VAT Act, 2025 (Act 1151), the GRA's notice says. Businesses that used it now charge the standard 15% VAT plus 2.5% NHIL and 2.5% GETFund, an effective 20%, and can claim input tax on purchases, including the two levies.
Many Nigerian-owned retailers in Ghana registered on the flat rate scheme because it was simple: a single low percentage on sales and no input tax claims. That option has gone. The change came with a wider overhaul of Ghana VAT that took effect at the start of 2026.
What changed on 1 January 2026
The GRA's notice to VAT-registered taxpayers and EY's 12 January 2026 alert describe the VAT Act, 2025 (Act 1151), which repealed the VAT Act, 2013 (Act 870):
- Flat Rate Scheme abolished. EY notes that both flat rates, 3% for qualifying retailers and 5% for qualifying immovable property, were removed.
- Standard VAT at 15%, with NHIL at 2.5% and GETFund at 2.5%, an effective 20% (the GRA's figure).
- NHIL and GETFund can be deducted as input tax; previously they could not.
- COVID-19 Health Recovery Levy abolished.
- Goods threshold raised from GH¢200,000 to GH¢750,000 of taxable supplies in a year; suppliers of services have no threshold and register within 30 days of starting.
- Non-registration penalty now at least three times the tax payable, per EY.
What a former flat-rate retailer now does
If your shop's turnover is above GH¢750,000, you remain registered and move to the standard system: charge the full rate on each sale, keep valid VAT invoices for purchases, and claim input tax. EY found no transitional rules specific to flat-rate businesses in the Act, so speak to your GRA office if you are unsure how your registration was migrated. If your goods turnover is below the new threshold, ask the GRA whether you can deregister; When must my Ghana business register for VAT? sets out the test.
A worked comparison
Example, for illustration only. A provisions shop has VAT-exclusive monthly sales of GH¢100,000 and buys GH¢70,000 of stock on which it paid GH¢14,000 of VAT and levies (at 20%).
| Old flat rate (3%) | From 2026 (20% standard) | |
|---|---|---|
| Tax on sales | GH¢3,000 | GH¢20,000 |
| Input tax claimed | none | GH¢14,000 |
| Net payable to GRA | GH¢3,000 | GH¢6,000 |
The figures show why records now matter so much. A shop that cannot prove its input tax with valid invoices pays the full GH¢20,000. One with clean purchase records pays the difference. Pricing matters too: if shelf prices stay the same, the extra VAT comes out of margin.
Pricing after the change
A retailer that moved from a 3% flat rate to an effective 20% has three choices: raise shelf prices, absorb part of the tax in its margin, or a mix of both. Before deciding, work out your real input tax. A shop that buys most of its stock from VAT-registered importers and distributors will recover a large share of the output tax; one that buys from informal suppliers who issue no VAT invoices will recover little. That difference, not the headline rate, decides how much the change costs you.
Nigerian-owned shops that import directly should also note that EY flags a cascading effect that may remain on imports, because the Act's import valuation section does not exclude NHIL and GETFund from the taxable value of imported goods. Ask your clearing agent and adviser how that shows up in your landed cost.
If you are below the new threshold
The threshold for goods rose to GH¢750,000 a year, so some small shops that had to register under the old GH¢200,000 limit may no longer need to. Deregistering is a decision with costs as well as savings: an unregistered shop stops charging VAT but also stops reclaiming it on purchases. A shop selling mainly to VAT-registered businesses may prefer to stay registered so its customers can claim. Speak to your GRA office before you stop charging.
Invoices and records
EY notes that a fiscal receipt from a fiscal electronic device now satisfies invoicing rules, and that buyers using such devices must give their TIN to claim input tax. PwC Ghana lists a penalty of up to GH¢1,200 for failing to issue a proper invoice. Ask every supplier for a valid VAT invoice, and keep purchase records for at least six years. Returns remain monthly; see When is the Ghana VAT return due each month?.
Where Pryme fits
For a shop that buys stock from Nigeria, a Pryme Business Account holds naira and dollars for supplier payments, and verifiable receipts and statements generated with VerifyDoc.ai give you a record a third party can check. Ghana VAT itself is filed with the GRA.
Questions people ask
Has Ghana abolished the VAT flat rate scheme?
Yes, from 1 January 2026, under the VAT Act, 2025 (Act 1151).
What is the VAT rate in Ghana in 2026?
15% VAT plus 2.5% NHIL and 2.5% GETFund, an effective 20%, with the COVID-19 levy abolished.
Can I claim NHIL and GETFund as input tax in Ghana?
Yes. Act 1151 made both levies deductible as input tax from 1 January 2026.
What is the VAT registration threshold in Ghana now?
GH¢750,000 of taxable supplies of goods in a year; suppliers of services register within 30 days of starting, with no threshold.
Sources
- Ghana Revenue Authority: Notice to all VAT-registered taxpayers (VAT Act, 2025) · accessed Oct 2026
- EY Global Tax News: Ghana's Parliament enacts several indirect tax laws effective 1 January 2026 (12 Jan 2026) · accessed Oct 2026
- PwC Ghana: Navigating taxation, 2026 tax facts and figures (July 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.