The Ghana Revenue Authority (GRA) has identified about 100 additional non-resident digital service providers that are not charging and remitting applicable taxes, as it moves to widen compliance under its digital Value Added Tax (VAT) collection system.

The providers will progressively be brought into compliance, potentially increasing the tax component of subscriptions and payments for digital services where the statutory charges were previously not applied.

The Authority said this initiative is not introducing a new tax or increasing the existing rate but enforcing obligations already established under Ghanaian law.

Eugene Ansu Kyeremeh, Communication Lead for the Real Time VAT Project, said the effective tax rate on qualifying electronically supplied services remains 20 percent, comprising 15 percent VAT, a 2.5 percent National Health Insurance Levy (NHIL) and a 2.5 percent Ghana Education Trust Fund (GETFund) Levy.

He said the new collection system is intended to close compliance gaps in Ghana's expanding digital economy and ensure foreign companies supplying services to local consumers meet their tax obligations.

GRA disclosed that approximately 92 non-resident digital service providers have already registered with the Authority and are charging and remitting the applicable taxes.

Identification of another 100 providers not complying with the requirements highlights the scope for expanding the tax base as more consumer spending shifts towards online platforms and electronically delivered services.

The Authority said consumers who already pay the statutory taxes through their subscriptions should not be charged again on the same transactions following implementation of the new system.

However, customers using platforms that have not previously applied the required taxes could see their payments increase as the identified providers are brought into compliance.

GRA has therefore rejected suggestions that the initiative amounts to an additional 20 percent charge on digital services, maintaining that the system is designed to improve the collection of existing liabilities rather than create a new tax burden.

Under the arrangement, participating financial institutions and payment service providers will facilitate collection of applicable taxes at the point of payment. This is expected to reduce the Authority's reliance on foreign digital companies to accurately declare transactions and remit the corresponding amounts.

The system covers qualifying electronically supplied services, including streaming subscriptions, cloud computing, online gaming and digital advertising purchased through Ghana-issued bank cards, mobile money and other digital payment platforms.

GRA said the arrangement will improve transparency by making the tax component of eligible transactions identifiable during payment processing.

This approach also places financial institutions and payment service providers at the centre of compliance, allowing tax collection to be integrated into digital payment channels used by consumers.

The implementation comes as governments increasingly seek to capture tax revenue from cross-border digital transactions, where foreign suppliers can serve customers in domestic markets without maintaining a substantial physical presence in those countries.

For Ghana, bringing additional providers into compliance could broaden tax collections from digital consumption without changing the statutory rates. The actual revenue gains, however, will depend on the number of providers successfully brought into the system, the value of their transactions and the effectiveness of enforcement.

The Authority clarified that the system applies to digital services and not imported physical goods, which will continue to be subject to the relevant Customs procedures.

To limit disruptions and prevent duplicate taxation, GRA said it will continue engaging banks, payment service providers and digital service companies during implementation.

It also urged consumers who encounter charges that appear inconsistent with the clarification to contact the Authority through its official communication channels for assistance and redress.

GRA said the initiative forms part of broader efforts to strengthen tax compliance and ensure that non-resident companies operating in Ghana's digital economy meet the same applicable tax requirements.

"The tax obligation already existed under Ghanaian law," the Authority's clarification emphasised, adding that the new system is intended to improve compliance and ensure the appropriate taxes are collected.