Value Added Tax (Amendment) Act, 2023 Act 1107

VALUE ADDED TAX (AMENDMENT) ACT, 2023 Act 1107
ARRANGEMENT OF SECTIONS
Section
1. Section 3 of Act 870 amended
2. Sections 47D and 47E inserted
3. Section 48 of Act 870 amended
4. First Schedule to Act 870 amended
5. Second Schedule to Act 870 amended

0 amended
2. Sections 47D and 47E inserted
3. Section 48 of Act 870 amended
4. First Schedule to Act 870 amended
5. Second Schedule to Act 870 amended

Act 1107
The One Thousand one hundred and seventh
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
VALUE ADDED TAX (AMENDMENT) ACT, 2023
AN ACT to amend the Value Added Tax Act, 2013 (Act 870) to provide
for a flat rate of tax on the rental of commercial premises other
than commercial rental establishments; to provide for a flat rate of
tax on the supply of immovable property by an estate developer; to
extend the zero tax rate for locally manufactured textiles and locally
manufactured vehicles; to introduce a zero tax rate for locally
manufactured sanitary towels; to waive the tax on electric vehicles
for public transportation; to review the exemptions for specified
goods and services and provide for related matters.
DATE OF ASSENT: 29th December, 2023.
Passed by Parliament and assented to by the President
Section 3 of Act 870 amended
1. The Value Added Tax Act, 2013 (Act 870) referred to in this Act as
the “principal enactment” is amended in section 3 by the insertion after
subsection (3), of
“(4) Where a taxable person makes a taxable
supply of an immovable property for rental purposes
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section 3 by the insertion after
subsection (3), of
“(4) Where a taxable person makes a taxable
supply of an immovable property for rental purposes
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Value Added Tax (Amendment) Act, 2023 Act 1107
other than for accommodation in a dwelling or in a
commercial rental establishment, that person shall
account for the tax payable under this section at a flat
rate of five per cent calculated on the value of the taxable
supply. (5) Where a taxable person who is an estate
developer makes a taxable supply of an immovable
property, that person shall account for the tax payable
under this section at a flat rate of five per cent calculated
on the value of the taxable supply”. Sections 47D and 47E inserted
2. The principal enactment is amended in section 47 by the insertion
after section 47C, of
“47D. An appointed withholding agent who fails
to withhold Value Added Tax and remit to the
Commissioner-General by the 15th day of the month
following that in which the amount was due under this
section shall pay
(a) the Value Added Tax that should have been
withheld; and
(b) a penalty of thirty pmcent of the amount. 47E.

nt was due under this
section shall pay
(a) the Value Added Tax that should have been
withheld; and
(b) a penalty of thirty pmcent of the amount. 47E.

An appointed withholding agent who fails to
withhold Value Added Tax but pays the Value Added Tax
that should have been withheld to the Commissioner-General
is entitled to recover an equal amount from the person
receiving or entitled to receive a payment from which Value
Added Tax is required to be withheld under this section.”. 3

equal amount from the person
receiving or entitled to receive a payment from which Value
Added Tax is required to be withheld under this section.”. 3

Act 1107 Value Added Tax (Amendment) Act, 2023
Section 48 of Act 870 amended
3. The principal enactment is amended in section 48
(a) by the insertion after paragraph (b) of subsection (1), of
“(c) an amount equal to the tax fraction of any amount
paid during the tax period by the taxable person to
indemnify another person under a non-life
insurance contract where
(i) the supply of the non-life insurance contract is
a taxable supply;
(ii) the payment is not in respect of the supply of
goods or services to the taxable person or the
importation of goods or services by the taxable
person;
(iii) the supply of the non-life insurance contract is
not a supply charged with tax at a rate of zero
per cent under section 36; and
(iv) the payment does not result from a supply of
goods or services to that other person where
those goods are situated outside Ghana or
those services are physically performed
elsewhere than in Ghana at the time of the
supply” and;
(b) by the insertion after subsection (7D), of
"(7E) A taxable person to whom subsection (4) of
section 3 applies does not qualify for an input tax
deduction in respect of a supply of immovable property
for rental purposes; and
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ubsection (4) of
section 3 applies does not qualify for an input tax
deduction in respect of a supply of immovable property
for rental purposes; and
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Value Added Tax (Amendment) Act, 2023 Act 1107
(7F) A taxable person to whom subsection (5) of
section 3 applies does not qualify for an input tax
deduction in respect of a supply of immovable
property”.
First Schedule to Act 870 amended
4. The principal enactment is amended in the First Schedule
(a) by the substitution for the definition of “estate developer”
at paragraph 2, of
““estate developer” means a commercial
establishment or an individual engaged in the
business of construction or renovation and supply
of immovable property;”;
(b) by the substitution for the opening phrase of paragraph 6,
of
“6. A supply of the following inputs for agricultural
purposes”;
(c) by the substitution for subparagraph (2) of paragraph 10,
of
"(2) The exemption in subparagraph (1) does not
apply to
(a) imported
(i) textbooks,
(ii) exercise books,
(iii) newspapers,
(iv) publications; and
(v) charts;
(b) architectural plans and similar plans;
(c) drawings;
5

ed
(i) textbooks,
(ii) exercise books,
(iii) newspapers,
(iv) publications; and
(v) charts;
(b) architectural plans and similar plans;
(c) drawings;
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Act 1107 Value Added Tax (Amendment) Act, 2023
(d) scientific and technical works;
(e) periodicals;
(f) magazines;
(g) trade catalogues;
(h) price lists;
(i) greeting cards;
(j) almanacs;
(k) calendars;
(I) diaries and stationery; and
(m) other printed matter.”;
(d) by the substitution for paragraph 15, of
“15. A supply of domestic transportation of passengers
by road, rail and water, except the supply of haulage or the
rental or hiring of passenger and other vehicles.”;
(e) by the substitution for subparagraph (a) of paragraph 18, of
“(a) immovable property, including land
used or intended for use for the purpose
of a dwelling but excluding the supply
of immovable property by an estate
developer;”;
(f) by the substitution for paragraph 19, of
“19. A supply of financial services excluding non-life
insurance.”;
(g) by the deletion of paragraph 21; and
(h) by the substitution for paragraph 27, of
“27. (a) importation of plant and machinery designed
specifically for use in the automobile industry
and kits by an automobile manufacturer or
assembler who is registered under the Ghana
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inery designed
specifically for use in the automobile industry
and kits by an automobile manufacturer or
assembler who is registered under the Ghana
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Value Added Tax (Amendment) Act, 2023 Act 1107
Automotive Manufacturing Development
Programme; and
(b) importation of electric vehicles for public
transportation.”.
Second Schedule to Act 870 amended
5. The principal enactment is amended in the Second Schedule by
(a) the substitution for subparagraph (10) of paragraph 2, of
"(10) A supply of locally manufactured textiles up to
31st December, 2025 by a local manufacturer who has been
approved by the Minister responsible for Trade and Industry.”;
(b) the substitution for subparagraph (11) of paragraph 2, of
"(11) A supply of locally assembled vehicles under the
Ghana Automotive Development Programme from
1st September, 2022 to 31st December, 2025.”; and
(c) the insertion after subparagraph (11) of paragraph 2, of
"(12) The supply of locally manufactured sanitary
towels.”.
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Act 1107 Value Added Tax (Amendment) Act, 2023
Date of Gazette notification: 29th December, 2023.
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