Ghana VAT, NHIL and GETFund — explained.
Ghana does not apply a single VAT rate. It applies three separate indirect levies on applicable transactions. Understanding how they work — and how they must be tracked — matters for every registered business. This page explains the structure and how Finza structures records across all three.
Framework in effect
Effective 1 January 2026, Finza follows Ghana's revised VAT framework: VAT remains 15%, NHIL remains 2.5%, and GETFund remains 2.5%. Under this framework, NHIL and GETFund are treated as input tax deductions.
The three levies
Three levies. Three separate accounts. One transaction.
When a VAT-registered business in Ghana raises a taxable invoice, three levies apply. Each has its own rate, its own statutory purpose, and its own remittance path.
VAT
15%Value Added Tax
Remitted to: Ghana Revenue Authority (GRA)
The primary consumption tax in Ghana. Collected at the point of sale from the customer and remitted to GRA. Input VAT paid on taxable purchases can be deducted from output VAT collected, leaving only the net amount payable. The standard rate is 15%.
Input VAT on qualifying purchases is reclaimable.
NHIL
2.5%National Health Insurance Levy
Remitted to: National Health Insurance Authority
Applied on the same taxable base as VAT. NHIL is collected alongside VAT but remitted to the National Health Insurance Fund to finance Ghana's public health insurance system. It is shown separately on GRA-issued tax invoices.
Effective 1 January 2026, NHIL is treated as an input tax deduction under Ghana's revised VAT framework.
GETFund
2.5%Ghana Education Trust Fund Levy
Remitted to: GETFund Secretariat
Applied on the same taxable base as VAT and NHIL. GETFund proceeds are earmarked for educational infrastructure projects across Ghana. It is collected at point of transaction and must be shown as a separate line on the tax invoice.
Effective 1 January 2026, GETFund is treated as an input tax deduction under Ghana's revised VAT framework.
Worked example
What a Ghana tax invoice looks like.
A consulting firm raises an invoice for services at GHS 5,000. The firm is VAT-registered under the standard scheme. Here is how the levies are calculated and charged:
Tax Invoice — Services rendered
Each levy must be shown separately on the invoice. They each go to a separate ledger account.
The total tax charge is GHS 1,000 — not "VAT of GHS 1,000" but VAT, NHIL, and GETFund each at their separate rates. These are separate liabilities with separate remittance paths. Treating them as a single number is both incorrect accounting and a compliance risk.
Accounting treatment
How the accounting journal entry should look.
When a taxable invoice is raised, the correct double-entry journal entry has five lines — not two or three. Each levy must be credited to its own account. This is how Finza structures the entry in the workflow:
Journal Entry — Invoice raised: GHS 5,000 service
Total amount owed by client
Net service value
Liability to GRA
Liability to NHIA
Liability to GETFund
Finza keeps this entry connected to the transaction so your accountant can review the records before filing.
How Finza handles Ghana tax
Clear levy lines for each transaction.
Calculated at the point of transaction
When you raise an invoice or record a taxable sale in Finza, VAT, NHIL, and GETFund are calculated on the taxable amount immediately. You do not calculate tax at period end - it is already done.
Posted to separate ledger accounts
Each levy is posted to its own liability account. VAT Output, NHIL Payable, and GETFund Payable are three distinct accounts in the general ledger. They are never combined or bundled.
Reports your accountant can review before filing
Your VAT control account shows output VAT and input VAT entries linked to transaction records across periods. Finza helps reduce manual assembly by keeping transaction records connected.
Input tax tracked on purchases
When you record a taxable purchase, input VAT is posted to an Input VAT account. Effective 1 January 2026, NHIL and GETFund are also treated as input tax deductions under Ghana's revised framework — and are tracked accordingly. The net position for each levy is always visible. You know exactly what you owe to GRA at any point in time.
Ghana VAT, NHIL and GETFund shown clearly in the workflow.
VAT, NHIL, and GETFund calculated and separated at each transaction with records your accountant can review.
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Finza helps structure business records and tax lines, but it is not tax or legal advice. Your accountant or tax adviser should review your filings and treatment before submission.