The Ghana Revenue Authority (GRA) has implemented a 15% Value Added Tax (VAT) on non-life insurance premiums, starting on 1 July 2025.
The new VAT rate applies to non-motor insurance policies covering areas such as property, health, and travel. It was increased from 12.5%.
The government exempts motor insurance from VAT, in a move seen as a bid to promote motor insurance penetration. It could also enhance compliance with mandatory motor insurance requirements while easing financial pressures on vehicle owners.
The new VAT rate is part of measures outlined in the 2025 national budget to boost public revenue. For businesses and individuals, this means higher premiums on non-life insurance products.
Separately, the government imposes levies totalling 6% on all non-motor insurance policies, as set out in the VAT (Amendment) Act, 2023. The 6% (applicable before VAT) comprises: National Health Insurance Levy – 2.5% (applied before VAT); GETFund Levy – 2.5%; and COVID-19 Levy. The 15% VAT is applied to insurance premiums after the 6% levies, making the effective tax rate 21.9%.