Businesses and people in Ghana utilizing Amazon Web Services (AWS) will face elevated prices because the cloud service supplier begins charging Value Added Tax (VAT) and different levies on its providers beginning March 1, 2025.
In an official communication, AWS introduced that it’ll apply a 15% VAT on all gross sales of its providers to clients in Ghana. Additionally, a 6% levy can be charged, overlaying the National Health Insurance Levy, Ghana Education Trust Fund Levy, and the COVID-19 Health Recovery Levy.
AWS is the world’s main cloud computing platform, offering companies, governments, and people with important computing energy, storage, and networking providers.
With this new tax implementation, Ghanaian companies counting on AWS for digital infrastructure will expertise larger operational prices.
The transfer aligns with Ghana’s tax rules, guaranteeing compliance with native tax legal guidelines. However, it might influence firms that rely upon AWS for cloud-based operations, as they may now have to issue within the extra bills.
Starting March 1, 2025, AWS will subject VAT invoices to clients in Ghana. Businesses and people are suggested to replace their AWS accounts with their Tax Registration Number (TRN) earlier than the deadline to facilitate VAT deductions.
AWS has urged clients to inform their finance and accounting groups to regulate for the tax implications and guarantee compliance with the brand new expenses.
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