The Ghana Revenue Authority (GRA): that 15% VAT on Non-Life Insurance premiums? It’s not some fresh taxit’s actually a reintroduction of an old one. The GRA points out this tax was originally part of Act 870, then the NPP government scrapped it back in 2017, and now, thanks to some 2023 legislative amendments, it’s back in play.
David Lartey-Quarcoopome, who heads up the Domestic Tax Revenue Department, clarified on JoyNews’ AM Show that insurance services were always supposed to fall under this tax law. So, GRA’s position is that this isn’t a surprise move it’s a reinstatement.
The delay in bringing it back? GRA had to coordinate with industry stakeholders, update their systems, and make sure everyone was on the same page operationally. They wanted a smooth rollout that wouldn’t disrupt insurance companies or policyholders.
Worth noting: motor vehicle insurance premiums are exempt from this VAT. Lartey-Quarcoopome confirmed that the government left motor insurance out of the affected categories.
Bottom line: the government is looking to broaden its tax base and shore up domestic revenue, especially within the formal insurance sector. This VAT isn’t new, but it’s back and this time, GRA’s watching compliance closely.