CUTS International has backed the Ghana Revenue Authority’s (GRA) collection of taxes on cross-border digital services but urged the government to review the 20% charge applied to recognised foreign distance learning programmes.
In a statement on Thursday, October 15, 2026, the policy think tank said the measure would protect government revenue and promote fair competition between local and foreign digital service providers.
The combined 20% charge comprises 15% Value Added Tax (VAT), the 2.5% National Health Insurance Levy and the 2.5% Ghana Education Trust Fund Levy. CUTS stressed that the collection mechanism strengthens enforcement of existing tax obligations rather than introducing a new tax on qualifying digital services.
“A software purchase should not escape tax because the customer receives a download instead of a CD. As commerce moves online, tax collection must follow. Leaving taxable digital imports outside effective collection would create a growing hole in Ghana’s revenue base,” said Appiah Kusi Adomako, Director of CUTS International’s West Africa Regional Centre.
However, CUTS raised concerns about charging students in Ghana the combined rate on recognised overseas distance learning programmes when comparable education offered by approved local institutions may qualify for VAT exemption.
“Two students living in Ghana and pursuing comparable recognised qualifications deserve fair tax treatment. Charging one student because the university delivers the course from abroad, while exempting comparable tuition supplied locally, raises a serious question of equity. Education policy should support access to skills,” Mr. Adomako said.
The organisation urged the Ministry of Finance, the GRA and the Ministry of Education to clarify the exemption rules and establish transparent criteria for recognising qualifying foreign distance learning programmes.
The GRA’s digital tax collection arrangements enable applicable taxes on qualifying cross-border digital services to be collected through participating payment providers.
The policy seeks to ensure that digital purchases are taxed where required, just as comparable taxable products sold locally are.
CUTS also welcomed the GRA’s arrangements for resolving wrongful deductions, urging banks to provide accessible complaint channels and promptly refund erroneous charges.
It further called for coordination between suppliers and payment providers to prevent customers from paying Ghanaian VAT twice on the same supply.
