By Sarah Baafi
The Ghana Revenue Authority (GRA) and the Ghana Union of Traders’ Association (GUTA) have agreed on transitional measures to ensure the smooth implementation of the Value Added Tax Act, 2025 (Act 1151).
The agreement was reached during a joint consultation meeting held in Accra on Wednesday, 7th January 2026, following concerns about the impact of the new VAT regime on traders, particularly those who previously operated under the VAT Flat Rate Scheme.
Under the agreed arrangement, all eligible taxpayers, including GUTA members, will continue to charge and account for VAT at an effective rate of 20 per cent comprising VAT, the National Health Insurance Levy, and the GETFund Levy until the end of the first quarter of implementation, in line with the law.
To address sector-specific challenges, the two institutions will establish a Joint Technical Team to work on issues including VAT record-keeping requirements, input VAT claims, and VAT calculation. The team is expected to make recommendations for possible reviews after engaging affected stakeholders.
The GRA and GUTA also agreed to intensify education and sensitisation programmes nationwide to guide traders through the transition and promote compliance with the new VAT regime.
In a reassurance to traders, the GRA pledged to adopt a collaborative approach to support businesses transitioning from the VAT Flat Rate Scheme. GUTA, on its part, urged its members to comply with the provisions of the new VAT law.
Both institutions reaffirmed their commitment to continued dialogue, stressing that the agreed measures are intended to protect the interests of traders and consumers while supporting national development.
