Meta, the company behind Instagram, Facebook, and Instagram will apply Ghana’s VAT charges across its ad platforms starting on August 1st, 2023.
Driving The News
According to Meta’s help page, all Meta ads in Ghana are subject to a value-added tax (VAT) and levies at the applicable local tax and levy rates. This will apply to advertisers whose ‘Sold To’ country is on their business or who have their personal address set to Ghana.
How It Will Work
In the payment settings, users who are registered for VAT in Ghana will provide their details including VAT/TIN number.
Meta states that the VAT TIN number will be displayed on ad receipts. All VAT and levies will be added whenever a user is charged for ads regardless of whether they’re purchasing Meta ads for business or personal purposes.
The Bigger Picture
The Ghana Revenue Authority has been putting in measures to widen its tax net and reach its targets. This has included introducing e-invoice as well as putting together a framework for taxing online foreign companies operating in Ghana.
By The Numbers
Currently, Ghana’s VAT rate is at 15%. Other taxes and levies charged include National Health Insurance Levy (2.5%), COVID levy (1%), GetFund Levy (2.5%)
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