VAT implementation on non-life insurance in Ghana
The Ghana Revenue Authority (GRA) has announced that, effective 1st April 2025, all non-life insurance products (excluding motor insurance) will attract Value Added Tax (VAT) and applicable levies under the Value Added Tax (Amendment) Act 2023 (Act 1107.
BREAKDOWN OF THE APPLICABLE TAXES
The total VAT rate applied to non-life insurance services is 21%. However, due the method of calculating VAT, the effective rate will be 21.9%. Here’s how it is determined:
National Health Insurance Levy (NHIL) – 2.5% (applied before VAT)
GETFund Levy – 2.5% (applied before VAT)
COVID 19 Levy – 1% (applied before VAT)
VAT – 15% (calculated on the sum of the insurance premium + NHIL + GETFund + COVID 19 Levy)
IMPLICATION
Starting 1st April 2025, non-life insurance premiums (exchanging motor insurance) will include VAT and levies.
The total VAT charge on policies will be 21% but due to how VAT is computed, the effective cost increase will be 21.9%
We understand that this is a significant change and we remain committed to keeping you informed and ensuring smooth transition.
If you have any further questions or need any further clarification, please feel free to contact us.
Contact OLEA M&G Insurance Brokers for all your insurance needs.
Stephen Kwarteng Yeboah is a seasoned Chartered Insurer, Chartered Accountant, and Risk Management Expert with 19+ years of experience in the insurance industry.
Managing Director – OLEA M&G Insurance Brokers Ltd
Vice President – Insurance Brokers Association of Ghana (IBAG)
Contact: +233 (0)302-254 647 / +233 (0)302-254 649
Email: contactghana@olea.africa /f.oppong@oleaafrica
Website: www.oleamgbrokers.com
Disclaimer: "The views expressed on this site are those of the contributors or columnists, and do not necessarily reflect insureghana's position. insureghana.com will not be responsible or liable for any inaccurate or incorrect statements in the contributions or columns here."
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