Real-Time VAT on Cross-Border Digital Services: What every stakeholder needs to know

Ghana’s digital economy has grown faster than its traditional VAT collection mechanisms. In 2022, only a few non-resident e-commerce entities were on the GRA’s radar. Today, about 167 non-resident e-commerce businesses are registered, mobilizing an average of GH¢43 million monthly and contributing an estimated GH¢515 million in VAT annually. Yet a significant VAT gap still remains.

The above data presents a key reason for visibility and real-time VAT collection to boost efficiency in revenue mobilization.

The GRA, under the leadership of Commissioner General, Anthony Kwasi Sarpong with committed support from Dr Martin Kolbil Yamborigya, Commissioner DTRD, launched the VAT compliance campaign on September 22, 2026 as one of the key efforts in ensuring voluntary compliance aimed at closing the collection gap.

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As one of the practical measures to close this gap, the Ghana Revenue Authority, under the Value Added Tax Act, 2025 (Act 1151), has introduced the Real-Time Value Added Tax (RTVAT) Framework powered by the Sentinal® system.

Let it be clear from the outset: RTVAT is not a new tax. It is a timely, accurate and transparent mechanism for collecting the VAT that is already due on cross-border digital services.

What is RTVAT?

RTVAT is VAT collected at the point of payment on qualifying cross-border digital service transactions and remitted to GRA in real time.

The RTVAT Framework is a mechanism used by GRA to identify, monitor and collect VAT using the Sentinal® System on those qualifying transactions.

A transaction falls under RTVAT when three conditions are met:

a. The payment instrument is issued in Ghana – a Ghana-issued card, mobile money account or digital wallet;

b. The merchant is non-resident; and

c. The service is supplied electronically.

Which services are in scope?

A cross-border digital service is a service supplied electronically by merchants or businesses outside Ghana. This includes:

- Online subscriptions and streaming such as Netflix, HBO, Apple TV, Amazon Prime

- Cloud services such as Microsoft Azure, Google Cloud

- Online gaming such as PlayStation Plus, Xbox Game Pass, Apple Arcade

- Online marketplaces, online advertising, and other digital services

Both registered and non-registered non-resident digital service providers are in scope.

Part A: For Customers and Taxpayers

1. Do I need to do anything differently?

No. Customers can continue to use their normal payment channels. The experience is seamless.

2. How is it collected?

The VAT is collected through the participating payment platforms from which payment is made. The customer pays a VAT-inclusive total, and the VAT component is automatically separated and remitted to GRA. You will be notified via SMS when the VAT is deducted.

3. What rate applies?

The usual rate: 15% VAT plus a combined levy of 5% for GETFund and NHIL – a combined 20%. This is the same rate applicable under Act 1151.

4. Will I pay VAT twice?

No. If the merchant is a VAT-registered non-resident, you will not pay VAT again to the merchant. RTVAT is collected on your behalf at the point of payment. The merchant’s obligation is to display prices exclusive of VAT and to notify you that VAT will be charged at the point of payment.

5. What if I am wrongfully charged?

If you do not receive an automatic refund, please notify the bank or Electronic Money Issuer (EMI) from which payment was made. All participating institutions have a dispute resolution mechanism.

Part B: For Merchants - Non-Resident Digital Service Providers

The GRA’s policy has not changed: every non-resident supplying taxable digital services to consumers in Ghana must register for VAT. There is no threshold.

Your new obligations under RTVAT are simple:

- For registered providers: Display prices exclusive of VAT. Notify customers that VAT is applicable at the point of payment. VAT will be charged on your behalf at the point of payment.

- For non-registered providers: You are required to register with GRA through the Authority’s online portal. Real-time collection does not relieve you of filing periodic VAT returns. Real-time collections form part of your reconciliation, especially for B2B transactions where reverse charge may apply.

Part C: For Participating Financial Institutions

This is a mandatory compliance reform for 2026 – the GRA’s Year of Compliance.

Regulated entities that process qualifying cross-border digital service transactions must integrate with the RTVAT Framework. This includes:

- Banks

- Payment Service Providers (PSPs)

- Electronic Money Issuers (EMIs)

- Third-Party Payment Providers (TPPs)

- Other regulated or licensed entities processing qualifying transactions

These institutions shall collect and remit the VAT to GRA. Integration is mandatory.

Why RTVAT Now?

In line with the GRA’s reforms which abolished nuisance taxes like the E-Levy and COVID-19 Levy and unify VAT at 15%, it is imperative to make the remaining taxes work better. RTVAT ensures fairness: local digital businesses already charge VAT; foreign businesses must also contribute. It ensures timeliness, accuracy, transparency, and levels the playing field.

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