Ghana Revenue Authority Announces Value Income Tax for Ride-Hailing Vehicles from January 1

Commencing January 1, 2024, the Ghana Revenue Authority (GRA) is set to implement a new tax policy known as the Value Income Tax (VIT), specifically targeting owners of ride-hailing vehicles. This move, in accordance with Section 22 of Regulations 2016, LI 2244, mandates income tax payments on a quarterly basis for owners of commercial vehicles earning income through their operations.

Ride-hailing platforms operating in Ghana, including Uber, Yango, and Bolt, have been notified by the GRA to update their digital platforms to incorporate the requirements of this new tax policy. The Authority has issued guidelines, urging companies to provide a softcopy of the VIT sticker, validate the authenticity of the sticker with the GRA, and submit a comprehensive quarterly list of all vehicles on their platform to the GRA.

The GRA has emphasized that the enforcement of these requirements will commence on January 1, 2024. The implementation of the Value Income Tax is anticipated to have an impact on the cost of ride-hailing services for users of platforms such as Bolt, Uber, Yango, and others in Ghana.

Additionally, owners of ride-hailing vehicles are directed to register their vehicles at any GRA office. This registration will enable them to make Value Income Tax payments using the shortcode *222#. The GRA’s proactive tax policy aims to ensure compliance within the ride-hailing industry and contribute to revenue generation for the country.