The Ghana Revenue Authority (GRA) is introducing a digital Value Added Tax (VAT) collection system that will allow it to independently monitor transactions by foreign online service providers and verify taxes due to the state.
Commissioner-General Anthony Kwasi Sarpong said the new arrangement would address gaps in the existing system, under which the authority largely depends on foreign companies to declare the volume and value of transactions involving Ghanaian consumers.
Speaking on Joy 99.7 FM’s Super Morning Show on Wednesday, October 14, 2026, Mr Sarpong said the current process made it difficult for the GRA to independently establish whether the transaction figures submitted by the companies were accurate.
“Today, it is Netflix that will tell GRA that we had 10 transactions in a month, and this is your VAT,” he said.
“We don’t have anything that allows us to validate whether indeed it is 10 transactions that took place in the month.”
The proposed system is expected to give the GRA access to transaction data, including the number of payments made, the total value of transactions and the corresponding VAT payable.
This will enable the authority to compare its records with those submitted by online service providers and identify discrepancies that could affect tax collection.
Mr Sarpong explained that the system would also facilitate the separation of VAT from payments at the point of transaction. Under the arrangement, the tax component would be directed to a government account, while the balance would be paid to the service provider.
“For every payment, we will know how many transactions took place, the value of it, the VAT, the same way Netflix will have it,” he said.
The GRA believes the new system will improve transparency and accountability in the taxation of digital services, an area in which transactions increasingly take place across borders.
The reform is also intended to provide the authority with more reliable data on Ghana’s digital services market, reducing its dependence on declarations made by foreign providers.
The extent to which the system will improve compliance and increase revenue will depend on its implementation and the authority’s ability to effectively monitor transactions and reconcile tax records.
