Commercial banks will begin collecting a 20% tax on qualifying cross-border digital services from October 15, 2026, potentially raising the cost of subscriptions to platforms such as Netflix, Spotify and ChatGPT where applicable taxes are not already included in the advertised prices.
The rollout follows directives from the Ghana Revenue Authority (GRA) requiring banks to collect and remit applicable taxes on qualifying digital transactions made using Ghana-issued bank cards.
Affected services include video and music streaming platforms such as Netflix, Spotify, Disney+, Showmax and beIN Sports; productivity software such as Microsoft 365, Adobe, Zoom and Google Workspace; and artificial intelligence tools, including ChatGPT.
Other potentially affected services include cloud computing platforms such as Amazon Web Services (AWS), Google Cloud and DigitalOcean, as well as online advertising services offered by Google, Meta, TikTok and LinkedIn.
Qualifying payments for online learning, digital gaming, virtual private networks (VPNs), cybersecurity services, travel bookings and business communication tools may also attract the tax, depending on the nature of the transaction and the applicable rules.
Some banks have already notified customers that applicable taxes will be included in the total amount payable when their debit cards are used to pay for qualifying services.
The banks have, however, emphasised that the tax is a statutory obligation rather than a fee imposed by them.
Not a new tax, but a change in collection
The October 15 rollout does not introduce a new tax on digital services. Rather, it changes the collection mechanism, placing greater responsibility on participating banks and payment service providers to collect applicable taxes on qualifying transactions and remit them to the GRA.
The legal framework is the Value Added Tax Act, 2025 (Act 1151), which took effect on January 1, 2026.
The effective 20% rate comprises 15% Value Added Tax (VAT), a 2.5% National Health Insurance Levy (NHIL) and a 2.5% Ghana Education Trust Fund (GETFund) Levy.
The arrangement is intended to improve tax compliance and strengthen revenue mobilisation from cross-border digital transactions by collecting the applicable taxes at the point of payment.
What customers will pay
For example, a qualifying digital subscription costing GH¢1,000 before taxes would attract GH¢150 in VAT, GH¢25 in NHIL and GH¢25 in GETFund Levy.
The combined tax liability would amount to GH¢200, bringing the total payment to GH¢1,200.
Customers could therefore face a 20% increase in the cost of affected subscriptions where the applicable taxes have not already been included in the advertised price.
The impact could extend beyond individual consumers to businesses that depend on foreign software, cloud infrastructure, digital advertising and artificial intelligence tools.
For such businesses, the additional charges could raise operating costs, particularly where multiple subscriptions are needed to support daily operations.
The new collection arrangement also highlights the need for greater transparency in digital payments. Customers will need clear information on how the taxes are calculated and whether they are already included in the prices charged by service providers.
Ultimately, the effectiveness of the arrangement will depend on consistent implementation by participating banks and payment providers, alongside clear communication to customers to minimise confusion over the additional charges.
