AWS to Introduce 15% VAT and 6% Levies: Amazon Web Services has announced that it will start charging 15% Value Added Tax (VAT) and an additional 6% in levies on cloud services in Ghana, effective March 1, 2025.

This change will impact both businesses and individuals, increasing operational costs for companies relying on AWS for cloud computing solutions.

Breakdown of Tax Implementation in Ghana

According to an official statement, the following tax charges will apply to all services in Ghana:

• 15% VAT on all sales of Amazon Web Services cloud services.
• 6% in additional levies, covering:
  • National Health Insurance Levy (NHIL)
  • Ghana Education Trust Fund (GETFund) Levy
  • COVID-19 Health Recovery Levy

This tax adjustment aligns with Ghana’s tax regulations, ensuring Amazon Web Services compliance with local tax laws.

How This Affects Businesses in Ghana

AWS is the leading global cloud computing platform, providing computing power, storage, and networking services to businesses, government institutions, and individuals.

With these new tax charges, Ghanaian businesses using Amazon Web Services for cloud-based operations will need to factor in increased costs when budgeting for IT infrastructure. Finance and accounting teams must be prepared to adjust for the additional expenses.

Steps for Businesses to Ensure Compliance

To comply with the new tax structure, Amazon Web Services will start issuing VAT invoices to Ghanaian customers beginning March 1, 2025. Amazon Web Services advises businesses and individuals to update their accounts with their Tax Registration Number (TRN) before the deadline to facilitate VAT deductions.

Amazon Web Services has also urged customers to inform their finance and accounting teams to ensure smooth compliance with these tax changes.

Stay Updated on Tax Changes

As Amazon Web Services integrates VAT and levies into its pricing structure in Ghana, businesses must stay informed and plan accordingly. Follow the latest updates to ensure compliance and adapt your cloud service budget ahead of the March 2025 deadline.

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