Ghana changes how foreign digital services are taxed

A business in Ghana paying for online advertising, accounting software or AI tools could end up paying more for those services if tax was not being charged before.Ghana has changed how it collects taxes on digital services supplied by companies outside the country. From 15 October 2026, banks and payment providers began helping the Ghana Revenue Authority (GRA) collect applicable taxes on qualifying transactions.

The change affects more than entertainment subscriptions. Businesses that rely on foreign software and online platforms also need to understand how the new arrangement affects their payments.

The extra cost depends on what a business already pays

Consider a small company paying GH₵500 a month for a foreign software subscription. If the applicable 20% tax has not been included in the price, it would pay another GH₵100, taking the monthly bill to GH₵600. For a business paying for several services, the difference could be noticeable by the end of the year.

But not every company will see its bills increase. Some providers may already charge the applicable taxes, so business owners need to check their invoices before making changes to their budgets. The 20% effective rate comprises 15% VAT, a 2.5% National Health Insurance Levy and a 2.5% Ghana Education Trust Fund Levy.

Payment providers are now part of the process

The revised arrangement allows participating banks and payment providers to collect applicable taxes when customers pay for qualifying foreign digital services through supported channels.

This puts more responsibility on the payment process itself, rather than leaving businesses to work out the tax treatment of every transaction on their own. For companies buying software or advertising from overseas, it will be worth checking bank statements against invoices to see how the charges are being applied. Any unclear deductions should be raised with the bank or service provider.

SMEs need to check their subscriptions

A small retailer paying for online adverts, a consultant using cloud software or a startup paying for AI tools may each have a different bill under the new arrangement. The important question is whether tax was already included in the price. Businesses should not assume that every foreign digital service attracts the same treatment or that every subscription will become 20% more expensive. Ghana's move is intended to improve the collection of taxes on foreign digital services. For local businesses, the effect will become clearer as they review their payments and see how the charges appear on their monthly statements.