Business News of 2026-10-14

Netflix, Google VAT already exists; new system targets collection – GRA

The Ghana Revenue Authority (GRA) has clarified that its new automated system for tracking taxes on digital services does not introduce a new tax but is intended to improve the collection of existing Value Added Tax (VAT). GRA Commissioner-General Anthony Sarpong made the clarification in an interview on Joy FM on Wednesday, October 14, 2026, explaining that VAT on digital services provided by foreign companies to consumers in Ghana has been in place since 2013. “It’s not a new tax, it’s not a new imposition of tax,” he said, dismissing concerns that the system would introduce an additional tax burden on users of digital platforms. Netflix, ChatGPT subscriptions face 20% tax collection from October 15 He explained that services such as Netflix, Google and Amazon already include VAT in their pricing. However, the authority has faced challenges tracking the volume of transactions and verifying the amount of tax paid by these foreign companies. Sarpong said the new system would automatically separate the tax component from payments made by customers, allowing the government to receive the tax directly. “At the point of payment, the system will take the 20 and give it to the Government of Ghana, which is the tax component, and remit the 100 ordinarily to Netflix,” he explained. The Commissioner-General stressed that the system was not intended to trigger an arbitrary 20% increase in subscription prices. He added that the system would strengthen compliance among about 92 established corporate remitters while bringing roughly 100 newly identified digital platforms into the tax net. Explaining why the system currently focuses on digital services rather than physical goods, Sarpong noted that imported products are already subject to customs procedures and duties when they enter Ghana through the country's airports and seaports. He said the automated system would cover various digital payment methods, including bank cards, mobile money and standing orders. “So any other digital payment platform you are using, at the point of payment, the system will split the value into two,” he said. Sarpong reiterated that the initiative was aimed at improving tax collection and compliance without introducing a new tax on consumers. ANAS/MA Foundries, Machines and Jet Engines: Ghana’s untapped engineering potential