Commercial banks will begin collecting a 20% tax on qualifying cross-border digital services from October 15, 2026, increasing subscription costs for platforms such as Netflix, Spotify, and ChatGPT where the applicable taxes are not already included.
The rollout follows directives from the Ghana Revenue Authority (GRA) requiring banks to collect and remit applicable taxes on qualifying digital transactions made with Ghana-issued bank cards.
The affected services include video and music streaming platforms such as Netflix, Spotify, Disney+, Showmax, and beIN Sports; productivity software including Microsoft 365, Adobe, Zoom, and Google Workspace; and artificial intelligence tools such as ChatGPT.
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Other services potentially covered 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, VPN and 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 of the banks have already sent notices to customers, indicating that the applicable taxes would be included in the total amount payable when customers use their debit cards to pay for qualifying services.
They, however, caution that the tax is a statutory obligation and not a fee imposed by them.
Not a new tax, only a change in collection
The October 15 rollout does not introduce a new tax on digital services.
Instead, it changes the collection mechanism, placing more responsibility on participating banks and payment service providers to collect the applicable taxes when qualifying transactions are processed 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 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, for a qualifying digital subscription costing GH¢1,000 before taxes, customers will now pay GH¢150 in VAT, GH¢25 in NHIL and GH¢25 in the GETFund Levy.
The combined tax liability will be GH¢200, bringing the total payment to GH¢1,200.
This means customers could 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 rely on foreign software, cloud infrastructure, digital advertising and artificial intelligence tools.
For these businesses, the additional cost could increase operating expenses, particularly where multiple subscriptions are required to support daily operations.
The new collection arrangement also places emphasis on 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.
Therefore, its effectiveness will depend on consistent implementation across participating banks and payment providers, as well as clear communication to customers to minimise confusion over the additional charges.
CNR