A GH¢1,000 monthly subscription will cost consumers GH¢1,200 from Thursday, October 15, 2026, as commercial banks begin charging a 20 per cent tax on eligible cross-border digital services at the point of payment. The Ghana Revenue Authority (GRA) has directed commercial banks to collect and remit the applicable taxes on qualifying transactions made using Ghana-issued bank cards. The additional charges will apply where the taxes are not already included in the advertised price.
Breakdown of the 20 per cent tax
The total charge comprises three components: a 15 per cent Value Added Tax (VAT), a 2.5 per cent National Health Insurance Levy (NHIL), and a 2.5 per cent Ghana Education Trust Fund (GETFund) Levy. For a monthly subscription costing GH¢1,000, customers will pay GH¢150 in VAT, GH¢25 in NHIL, and GH¢25 in GETFund Levy. These charges amount to GH¢200, bringing the total cost of the subscription to GH¢1,200.
Not a new tax
The rollout does not introduce a new tax. Instead, it is based on the Value Added Tax Act, 2025 (Act 1151), which came into effect on January 1, 2026. The main change is who collects the tax: banks and payment service providers will now collect the tax at the time a transaction is processed and forward it to the Ghana Revenue Authority (GRA), rather than relying on foreign providers to charge it. Some banks have already informed their customers that the tax will be added to the total when they use their debit cards for qualifying services. They emphasize that this tax is a statutory obligation, not a bank fee.
Who is affected
The services potentially affected include streaming platforms such as Netflix, Spotify, Disney+, Showmax and beIN Sports. Productivity tools, including Microsoft 365, Adobe, Zoom and Google Workspace, as well as artificial intelligence tools such as ChatGPT, may also fall within the scope of the tax.
Cloud service providers such as Amazon Web Services, Google Cloud and DigitalOcean could be affected, alongside digital advertising services offered by Google, Meta, TikTok and LinkedIn. Payments for online learning platforms, gaming services, virtual private networks (VPNs), cybersecurity tools, travel bookings and business communication services may also attract the tax, depending on the nature of the transaction and the applicable rules.
Impact on businesses
The impact is expected to extend beyond households to businesses that rely on foreign software, cloud infrastructure, digital advertising and AI-powered tools. These businesses could face increased operating expenses, particularly those that depend on multiple digital subscriptions to support their day-to-day operations.
The need for clarity
Transparency will be crucial to the implementation of the tax on digital payments. Customers need clear information on how the charges are calculated and whether the applicable taxes are already included in the advertised prices. The effectiveness of the arrangement will depend on banks and payment service providers applying the rules consistently and clearly communicating any additional charges to customers. This will help minimise confusion and prevent unexpected costs at the point of payment.
