In a bid to bolster its revenue mobilization efforts, the government of Ghana has announced the imposition of a 21% Value Added Tax (VAT) on advertisements placed on the popular social media platform, Facebook.
The new charge will come into effect from August 1, 2023, and will apply to both business and personal advertisements.
The announcement was made by Meta, the parent company of Facebook. According to Meta's communication, all advertisers with a business presence in Ghana will be subject to the following levies: 2.5% National Health Insurance Levy (NHIL), 2.5% GETFUND levy, 1% COVID-19 Levy, in addition to the original 15% VAT.
The company clarified that the VAT levies on ad sales are applicable to both business and personal purposes, meaning all advertisers will be affected regardless of the nature of their ads.
Meta's email to businesses stated, “If you're registered for VAT and provide your name, address, and VAT ID, your name, address, and VAT ID will show up on your ads receipts. In the event that you're entitled to recover VAT, this may help you recover any VAT you paid to the Ghana Revenue Authority if you are a VAT-registered business in Ghana.”
The Ghanaian government aims to target e-commerce and digital platforms for taxation as part of its strategy to enhance revenue generation.