GRA directs banks to collect 20% tax on Netflix, ChatGPT and other cross-border digital services from October 15

Banks to begin collecting 20% tax on Netflix, Spotify, ChatGPT subscriptions from October 15

Commercial banks in Ghana will begin collecting a combined 20% tax on qualifying cross-border digital services from October 15, 2026, potentially increasing the cost of subscriptions to platforms such as Netflix, Spotify and ChatGPT where the applicable taxes are not already included in the advertised prices.

The rollout follows directives from the Ghana Revenue Authority (GRA) requiring banks to collect and remit applicable taxes on qualifying digital transactions made with Ghana-issued bank cards.

The affected services include video and music streaming platforms such as Netflix, Spotify, Disney+, Showmax and beIN Sports; productivity software such as Microsoft 365, Adobe, Zoom and Google Workspace; and artificial intelligence tools, including ChatGPT.

Other potentially affected services include cloud computing platforms such as Amazon Web Services (AWS), Google Cloud and DigitalOcean, as well as online advertising services offered by Google, Meta, TikTok and LinkedIn.

Qualifying transactions involving online learning, digital gaming, virtual private networks (VPNs), cybersecurity services, travel bookings and business communication tools may also attract the applicable taxes, depending on the nature of the service and the relevant tax rules.

Some banks have already notified customers that applicable taxes will be included in the total amount charged to their debit cards when they pay for qualifying services. The banks have emphasised that the charges are statutory obligations rather than fees imposed by the financial institutions.

The October 15 implementation does not introduce a new tax on digital services but changes how applicable taxes are collected on qualifying transactions. Under the arrangement, participating banks and payment service providers will have greater responsibility for collecting the taxes when payments are processed and remitting them to the GRA.

The legal framework is the Value Added Tax Act, 2025 (Act 1151), which took effect on January 1, 2026.

The combined 20% rate comprises 15% Value Added Tax (VAT), a 2.5% National Health Insurance Levy (NHIL) and a 2.5% Ghana Education Trust Fund (GETFund) Levy.

The collection arrangement is intended to improve tax compliance and strengthen domestic revenue mobilisation from cross-border digital transactions by ensuring that applicable taxes are collected at the point of payment.

For instance, a qualifying digital subscription costing GH¢1,000 before taxes would attract GH¢150 in VAT, GH¢25 in NHIL and GH¢25 in GETFund Levy, bringing the total payment to GH¢1,200.