Tax analyst Francis Timore Boi warned on Eyewitness News that subscribers of foreign digital service providers who have not been charging applicable taxes may see their subscription costs rise once a new system comes into force. The new arrangement will require commercial banks to collect taxes on qualifying cross‑border digital services, keeping the effective rate at 20% but potentially adding a price bump for those services that have not yet been taxed.
Boi explained that about 92 digital service providers are already charging the applicable taxes, while others operating outside Ghana have yet to register and comply. He said, “It’s not a new tax, it’s a new way of collection.” He added that subscribers of those providers are likely to see a jump in their prices when the system is implemented.
The Ghana Revenue Authority (GRA) has clarified that the arrangement does not introduce a new tax or result in double taxation. The effective rate remains 20%, comprising 15% VAT, a 2.5% National Health Insurance Levy and a 2.5% Ghana Education Trust Fund Levy.
Under the new system, payments for services such as Netflix, Spotify, Disney+, Showmax, beIN Sports, Microsoft 365, Adobe, Zoom, Google Workspace, ChatGPT, Amazon Web Services, Google Cloud and DigitalOcean may be subject to the tax. Qualifying payments for online advertising, digital learning, cybersecurity, VPN services and online travel bookings may also fall within its scope.
Boi urged authorities to begin public engagement earlier when introducing similar national initiatives, noting that many subscribers were unaware they had already paid VAT on services like Netflix. He defended extending tax collection to foreign providers to promote fairness between local and international operators, citing DStv and Netflix as examples.
Some commercial banks have already notified customers that the applicable taxes will be reflected in payments for qualifying services made with their cards, clarifying that the charges are statutory obligations and not bank fees. The GRA is rolling out the system to improve the collection and accounting of taxes on qualifying cross‑border digital services.
