Proforma Invoice (Ghana)

A Proforma Invoice in Ghana records the goods or services supplied and the amount the recipient is required to pay.

Under Section 41 of the Value Added Tax Act 2013 (Act 870), a VAT-registered supplier in Ghana must issue a tax invoice at the time of supply — not before — showing the supplier's VAT registration number issued by the Ghana Revenue Authority (GRA), the buyer's name and address, the date of supply, a description of the goods or services, the taxable value, the VAT charged at 15%, the National Health Insurance Levy (NHIL) at 2.5%, and the Ghana Education Trust Fund (GETFund) levy at 2.5%. A Proforma Invoice is issued before the supply is made and therefore does not meet the requirements of a tax invoice under Act 870, but it should clearly show these rates to give the buyer an accurate indication of the total VAT-inclusive cost.

The Ghana Revenue Authority (GRA) requires all businesses with annual turnover exceeding GHS 200,000 to register for VAT under the Value Added Tax Act 2013 (Act 870). A Proforma Invoice issued by a VAT-registered business should include the supplier's GRA Taxpayer Identification Number (TIN) and VAT registration number, to allow the buyer to verify the supplier's tax status before making payment. Buyers who are themselves VAT-registered may need to verify the supplier's VAT registration number on the GRA's online taxpayer portal.

In international trade, Ghana Customs Authority — an operational division of the Ghana Revenue Authority (GRA) — uses the Proforma Invoice together with the commercial invoice, packing list, and bill of lading to assess customs duty under the Customs Act 2015 (Act 891) and the ECOWAS Common External Tariff (CET). The Proforma Invoice must accurately describe the goods, the country of origin, and the total value (including insurance and freight if CIF terms are used) because customs duty under Act 891 is assessed on the customs value of the goods.

The Bank of Ghana (BoG) and commercial banks licensed by BoG require importers to produce a Proforma Invoice when opening a documentary letter of credit (LC) under the Foreign Exchange Act 2006 (Act 723) for payment of import transactions. The Proforma Invoice serves as the basis for the bank's assessment of the LC amount and the currency conversion required under the applicable exchange control regulations.

The Ghana Standards Authority (GSA), established under the Ghana Standards Authority Act 2011 (Act 820), certifies the quality and safety of goods imported into Ghana. For regulated product categories — food, pharmaceuticals, construction materials, electrical equipment — the importer may be required to produce a Proforma Invoice alongside the GSA's pre-shipment inspection certificate to clear goods through Tema Port or Takoradi Port.

A well-prepared Proforma Invoice in Ghana includes the seller's full business name, address, TIN, and VAT registration number; the buyer's details; a precise description of the goods or services; the unit price in Ghana cedis (GHS) or agreed foreign currency; the applicable VAT, NHIL, and GETFund levy rates; the validity period of the quotation; and the proposed payment and delivery terms.

A Proforma Invoice in Ghana is needed across a wide range of trade, banking, and procurement contexts before a formal supply and tax invoice are issued.

A Proforma Invoice is required when an importer in Ghana needs to open a documentary letter of credit (LC) with a commercial bank licensed by the Bank of Ghana (BoG) to finance the purchase of goods from a foreign supplier. The bank requires the Proforma Invoice to establish the LC amount, the currency, and the goods description before authorising the foreign exchange transaction under the Foreign Exchange Act 2006 (Act 723).

A Proforma Invoice is needed when an exporter based in Ghana wishes to quote a price to a foreign buyer before the goods are manufactured or shipped, so the buyer can arrange payment, obtain import licences, and satisfy customs requirements in the destination country.

A Proforma Invoice is required when clearing imported goods through Ghana Customs at Tema Port, Takoradi Port, or Kotoka International Airport. Ghana Customs Authority (a division of the GRA) uses the Proforma Invoice to verify the declared customs value of the goods under the Customs Act 2015 (Act 891) and the ECOWAS Common External Tariff (CET) before releasing the goods.

A Proforma Invoice is needed when a Ghanaian supplier tenders for a government contract under the Public Procurement Act 2003 (Act 663) and is required to submit a price quotation showing the unit costs, total price, and applicable VAT and levies, before the formal award and tax invoice stage.

A Proforma Invoice is required when a business registered with the Ghana Free Zones Authority under the Ghana Free Zones Authority Act 1995 (Act 504) supplies goods or services to a domestic buyer and needs to document the price and the applicable VAT treatment (free zone supplies for export are zero-rated under the Value Added Tax Act 2013, while supplies to the domestic market attract the standard VAT rate).

A Proforma Invoice is needed when a buyer needs to obtain pre-approval from the Ghana Investment Promotion Centre (GIPC) under the Ghana Investment Promotion Centre Act 2013 (Act 865) for a capital expenditure project, and must submit a quotation from the equipment supplier showing the price and specifications.

A Proforma Invoice is required for pre-shipment finance applications to financial institutions, where the lender requires evidence of the transaction value and terms before disbursing export finance under the Ghana Export–Import Bank Act 2016 (Act 911).

A complete and commercially sound Proforma Invoice for use in Ghana under the Value Added Tax Act 2013 (Act 870) must contain the following essential elements.

Document Header: The words "PROFORMA INVOICE" prominently displayed at the top of the document, clearly distinguishing it from a formal tax invoice issued under Section 41 of the Value Added Tax Act 2013 (Act 870). The proforma invoice number and date of issue should be stated.

Seller Details: The full legal name of the seller (individual or company incorporated under the Companies Act 2019 (Act 992)); the seller's registered address; the Ghana Revenue Authority (GRA) Taxpayer Identification Number (TIN); and the seller's VAT registration number (if registered for VAT under Act 870). The seller's business registration number from the Office of the Registrar of Companies (ORC) may also be included for corporate sellers.

Buyer Details: The full name and address of the prospective buyer; the buyer's GRA TIN (where the buyer is a registered taxpayer, VAT-registered buyer, or a public institution procuring under the Public Procurement Act 2003 (Act 663)).

Proforma Invoice Number and Date: A unique proforma invoice reference number for tracking purposes, and the date of issue. Proforma Invoices should state a validity period — typically 30 days — after which the quoted price is subject to revision.

Goods and Services Description: A precise description of each item of goods or services to be supplied, including: the quantity; unit of measure; full technical specification or product description; country of origin (for imported goods); HS tariff code (for goods subject to Ghana Customs assessment under the Customs Act 2015 (Act 891) and the ECOWAS Common External Tariff); and unit price in GHS or agreed foreign currency.

Pricing and Taxes: The subtotal (excluding taxes); the VAT amount at 15% under Act 870; the National Health Insurance Levy (NHIL) at 2.5%; the Ghana Education Trust Fund (GETFund) levy at 2.5%; and the total amount payable (VAT-inclusive). Sellers exempt from VAT registration (below GHS 200,000 annual turnover) should note that no VAT is charged. The Invoice should also show any applicable import duties or other levies under the Customs Act 2015 (Act 891), if the goods are being imported.

Payment Terms: The proposed payment terms — for example, 50% advance payment with the balance on delivery; 100% payment against a documentary letter of credit (LC) with a bank licensed by the Bank of Ghana (BoG); or net 30-day credit terms.

Delivery Terms: The proposed delivery terms in accordance with the applicable Incoterms (e.g., EXW, FOB Tema Port, CIF Accra) and the estimated delivery date or lead time from the date of order confirmation.

Bank Details: The seller's bank account details (bank name, account number, sort code, SWIFT/BIC code for international payments) to enable payment, consistent with the Foreign Exchange Act 2006 (Act 723) for cross-border transactions.

Forms-legal.com provides this Proforma Invoice template as a starting point for businesses in Ghana. Businesses engaged in regulated sectors — pharmaceuticals, food imports, construction materials — should confirm the additional documentation required by the Ghana Standards Authority (GSA), the Food and Drugs Authority (FDA), or other relevant regulatory bodies before shipment.

Additional compliance elements for a Proforma Invoice (Ghana) used in Ghana include: Under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), the Bank of Ghana (BoG) regulates banking. The Securities Industry Act 2016 (Act 929) and Securities and Exchange Commission (SEC Ghana) regulate capital markets. Section 48 of the Bills of Exchange Act 1961 (Act 55) governs promissory notes. The Ghana Revenue Authority (GRA) administers tax obligations. The National Insurance Commission (NIC) regulates insurance. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.