UNODC urges closer cooperation with virtual asset service providers

GRA identifies 100 digital service providers avoiding tax compliance

The Ghana Revenue Authority (GRA) has identified approximately 100 non-resident digital service providers that have failed to charge or remit the required taxes to the state. This discovery is part of an ongoing effort by the tax authority to bolster compliance within the digital economy and ensure that all foreign-based companies operating in Ghana contribute their fair share of revenue. The initiative specifically targets the digital Value Added Tax (VAT) collection system, which is designed to capture revenue from various online services accessed by Ghanaian consumers. According to the GRA, these non-resident entities have been providing services to the local market without adhering to the statutory requirements for tax remittance. By bringing these 100 providers into the tax net, the authority aims to close loopholes that have allowed significant revenue to leak from the digital sector. The move is expected to streamline how digital services are taxed, creating a more level playing field between foreign providers and local businesses that are already compliant with Ghana's tax laws. The GRA plans to rigorously integrate these entities into its existing collection frameworks to ensure ongoing accountability. For consumers, the enforcement of these tax obligations is likely to result in a noticeable increase in the cost of digital subscriptions and online payments. Services that previously did not include VAT and other statutory charges will now have these components added to their pricing structures to reflect the required tax components. As the GRA moves forward with bringing these providers into compliance, it signals a broader push to modernize Ghana's tax administration and capture the growing value of the global digital marketplace within the national revenue framework. This initiative is expected to provide a consistent stream of revenue from a sector that has historically been difficult to regulate.