VAT Invoice Template (Ghana)

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

The Value Added Tax Act 2013 (Act 870) replaced the earlier Value Added Tax Act 1998 (Act 546) and extended the VAT regime to a wider range of goods and services in Ghana. Under Act 870, VAT applies at a standard rate of fifteen percent (15%) on the taxable value of goods and services supplied in Ghana by a VAT-registered person. In addition, two levies are imposed alongside VAT: the National Health Insurance Levy (NHIL) at 2.5% and the Ghana Education Trust Fund Levy (GETFund) at 2.5%, both collected by the Ghana Revenue Authority (GRA) under the National Health Insurance Act 2012 (Act 852) and the Ghana Education Trust Fund Act 2000 (Act 581) respectively. The COVID-19 Health Recovery Levy Act 2021 (Act 1068) introduced an additional one percent (1%) levy on VAT-registered supplies, bringing the effective combined rate to 21% on standard-rated supplies.

The VAT Flat Rate Scheme (VFRS), introduced under the Value Added Tax Act 2013 (Act 870) and the VAT Amendment Act 2017 (Act 948), allows qualifying retailers and traders to charge VAT at a flat rate of three percent (3%) on their total sales value in lieu of the standard input-output VAT mechanism. Businesses registered under the VFRS issue a different form of VAT invoice (a flat-rate VAT invoice) and cannot claim input VAT credits. The Ghana Revenue Authority (GRA) determines which businesses qualify for the VFRS.

Section 41 of the Value Added Tax Act 2013 (Act 870) specifies that a VAT invoice must show: the words 'VAT Invoice'; the supplier's name, address, and VAT registration number; the customer's name and address; the invoice date and a sequential invoice number; a description of the goods or services supplied; the taxable value of the supply; the VAT rate applied; the VAT amount charged; and the total amount payable including VAT, all stated in Ghana Cedi (GHS). The Electronic Transactions Act 2008 (Act 772) recognises electronic invoices as valid records for VAT purposes, provided the electronic invoice contains all the mandatory information and is issued through a system approved by the Ghana Revenue Authority (GRA).

Failure to issue a proper VAT invoice is an offence under Section 68 of the Value Added Tax Act 2013 (Act 870), punishable by a fine. VAT-registered businesses in Ghana are also required to file monthly VAT returns with the Ghana Revenue Authority (GRA) under the Revenue Administration Act 2016 (Act 915) and to remit collected VAT by the last working day of the month following the month of supply.

A VAT Invoice is needed in Ghana whenever a business or individual registered for VAT with the Ghana Revenue Authority (GRA) under the Value Added Tax Act 2013 (Act 870) makes a taxable supply of goods or services to a customer.

A VAT Invoice is required for every sale of goods by a manufacturer, wholesaler, or retailer in Ghana whose annual turnover exceeds the VAT registration threshold set by the Ghana Revenue Authority (GRA). The invoice must be issued at the time of supply or within twenty-one days after the time of supply under Section 41 of the Value Added Tax Act 2013 (Act 870).

A VAT Invoice is needed when a VAT-registered service provider — including an accountant, consultant, architect, lawyer, advertising agency, or ICT company registered under the Companies Act 2019 (Act 992) — charges fees to a client. The client may use the VAT invoice to claim input VAT credits against its own VAT output liability, making a compliant VAT invoice essential for the client's tax accounting under the Income Tax Act 2015 (Act 896).

A VAT Invoice is required when a VAT-registered transport company, freight forwarder, or logistics provider licensed by the Ghana Shippers Authority (GSA) charges a client for freight or logistics services. The invoice must comply with Section 41 of Act 870 to be accepted by the Ghana Revenue Authority (GRA) as a valid input tax document.

A VAT Invoice is needed when a construction company or building contractor in Ghana charges a client for construction services. The Real Estate Agency Act 2020 (Act 1047) and the Ghana Contractors Registration Board (GCRB) requirements interact with VAT obligations on construction supplies.

A VAT Invoice is required when a business files its monthly VAT return with the Ghana Revenue Authority (GRA) under the Revenue Administration Act 2016 (Act 915). GRA auditors may request copies of all VAT invoices issued and received during the audit period to verify the accuracy of the VAT return.

Parties in Ghana should prepare a VAT Invoice Template (Ghana) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. 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. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A Ghana Revenue Authority-compliant VAT Invoice under Section 41 of the Value Added Tax Act 2013 (Act 870) must contain the following mandatory elements.

Document Title: The words 'VAT INVOICE' prominently displayed at the top of the document, distinguishing it from a pro-forma invoice, a delivery note, or a receipt.

Supplier Details: Full legal name and trading name of the supplier, registered business address in Ghana, VAT registration number issued by the Ghana Revenue Authority (GRA), and Tax Identification Number (TIN) issued by GRA under the Revenue Administration Act 2016 (Act 915).

Customer Details: Full legal name and business address of the customer. Where the customer is VAT-registered, recording the customer's VAT registration number and TIN enables the customer to claim input VAT credits.

Invoice Number and Date: A unique sequential invoice number and the date of issue. GRA auditors use invoice numbers to cross-reference supplier output VAT with buyer input VAT claims.

Description of Supply: A clear description of the goods supplied or services rendered, including quantities, unit prices, and the relevant HS tariff code for goods subject to customs duty under the Customs Act 2015 (Act 891) where applicable.

Taxable Value: The value of the supply before VAT, stated in Ghana Cedi (GHS).

VAT Rate: The applicable VAT rate — standard rate 15%, NHIL 2.5%, GETFund 2.5%, COVID-19 Levy 1% — or the flat rate 3% where the supplier is on the VAT Flat Rate Scheme (VFRS) under the Value Added Tax Act 2013 (Act 870) and the VAT Amendment Act 2017 (Act 948).

VAT Amount: The Ghana Cedi (GHS) amount of VAT charged, calculated by applying the applicable rate to the taxable value.

Total Amount Payable: The sum of the taxable value and the VAT amount, in Ghana Cedi (GHS), representing the total amount the customer must pay.

Payment Terms: The due date for payment and the accepted payment methods — bank transfer, mobile money (MTN MoMo, Vodafone Cash, AirtelTigo Money), or cheque — consistent with the supplier's banking arrangements.

Forms-legal.com provides this VAT Invoice template as a starting point for VAT-registered businesses in Ghana. Businesses with complex VAT arrangements — including those dealing in exempt and taxable supplies — should consult a tax adviser registered with the Chartered Institute of Taxation Ghana (CITG) or the Institute of Chartered Accountants Ghana (ICAG).

Additional compliance elements for a VAT Invoice Template (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.