The Electronic Commerce (e-commerce) has become a crucial part of global retail including Ghana. Section 15 (4a) of the Value Added Tax (VAT) Act, 2025 (Act 1151) defines “Electronic commerce” to include a business transaction including a digital service that takes place through electronic transmission of data over communication network such as internet. Although e-commerce businesses have existed in Ghana for long, it was during the covid 19 pandemic and post covid 19 pandemic that e-commerce activities became eminent with many people buying and selling online.
Statista, an international statistics platform projects that by 2027, the e-commerce sector would account for 23% of all retail sales worldwide, up from 21.2% in 2025. Furthermore, it is anticipated that global e-commerce sales will increase from US$6.42 trillion in 2025 to US$7.89 trillion in 2028. By 2029, the African e-commerce market is expected to grow to a value of $56.03 billion, according to the Statista estimates. In Ghana, there are now 825 registered e-commerce businesses (consisting of 659 residents and 166 non-residents) as opposed to 204 (made up of 142 residents and 62 non-residents) in 2022. Additionally, VAT revenue from the e-commerce sector increased tremendously from GH₵ 209,434,800.14 (consisting of GH₵ 103,580,593.69 from residents and GHc 105,854,206.45 from non-residents) in 2022 to GH₵ 1,366,808,844.61 (i.e. GH₵ 871,324,420.29 accruing from residents & GH₵ 495,484,424.32 accruing from non-residents) in 2025. Cumulatively, Ghana Revenue Authority (GRA) earned GH₵ 3,213,522,482.70 (GH₵ 2,080,024,591.90 from residents and GH₵ 1,133,497,890.80 from non-residents) in VAT revenue from e-commerce/digital services from 2022-2025 averaging GH₵ 803,380,620.68 (GH₵ 520,006,147.98 from residents and 283,374,472.70 from non-residents) every year over this period.
A study by the Research Unit of GRA revealed that, about 20% of students, 45% of people in formal employment, 30% of self-employed and 5% of unemployed people engaged in e-commerce in Ghana. The research showed that Groceries and household items accounted for the highest percentage of revenue at 47.5%, followed by clothing and beauty products at 20% with the rest of the items (including home and garden products, sports products, pets and animal products, electronic products, building materials and agricultural products) accounting for 32.5%. Again, of the entities studied, 29.2% of them did not have integrated payment platforms. In contrast, 70.8%, accepted cash on delivery. Among the businesses using payment platform services, 71.4% of them used Mobile Money, while the remaining 28.6% used Trans flow and Visa Cards. Generally, online retail platforms in Ghana include Jumia Ghana, Melcom, Shopwice, Electromart, MyGhMarket, Goodpappa, ShopAfrica.com, Tonaton, Carmudi.com.gh, Lamudi, Jumia, Jiji, baahe.com, Tisu, Zoobashop, Kaymu, Ahonya, Ghanacar24.com, Cheki Ghana, Shopadollar, Hellofood, VIVIA, Dzifa.com and several others.
Despite the vital role e‑commerce plays in Ghana’s socio‑economic development, the GRA continues to encounter several obstacles in effectively taxing activities within the digital marketplace. Key challenges include operational limitations within existing online registration platforms, gaps in staff training on the taxation of e‑commerce and digital services, limited logistics, and the absence of a robust system for revenue assurance in the digital space. Nevertheless, these challenges have not prevented the GRA from making notable progress in revenue mobilisation, strengthening administrative processes, and advancing the development of appropriate legal frameworks to support the taxation of e‑commerce.
GRA has embarked on vigorous programmes in the short and medium terms to get its fair share of the huge revenue potential of this industry covering the following areas: (1) streaming and digital entertainment such as Netflix, Spotify, online gaming, (2) E-learning platforms including online courses and virtual tutoring, (3) Business Software and SaaS (e.g. Cloud tools like Microsoft 365, Adobe subscriptions), (4) Cross-Border Retail, (5) Gig Economy Payments, (6) Digital Advertising including Facebook Ads, Google Ads., TikTok Ads, (7) Online Travel Bookings (e.g. Airbnb, Booking.com, Expedia etc.), (8) Virtual Goods and In-App Purchases, (9) Digital Marketplace Facilitators, (10) Cryptocurrency and Virtual Asset Transactions, (11) Ride-Hailing and Mobility Platforms, (12) E-Commerce Logistics and Fulfilment Services, and (13) Social Media Monetization and Influencer Payments.
Additionally, GRA has constituted a committee to (1) identify and onboard all non-resident digital service providers operating in Ghana’s tax jurisdiction by tracking digital platforms and service providers offering remote services to Ghanaian consumers, ensuring they are registered for VAT, and establishing monitoring mechanisms for sustained compliance, (2) enforce accurate VAT Compliance by developing and implementing strategies to ensure non-resident suppliers charge, collect, and remit VAT to GRA, and (3) recommend and assess gaps in current laws, administrative structures, and international cooperation frameworks related to digital taxation.
Besides, GRA has deployed technology such as an e-Commerce Compliance Tool — an advanced digital compliance system designed to: (1) discover and flag unregistered non-resident suppliers by monitoring payment transactions and customer purchase patterns, (2) integrate with banks, card schemes, and mobile money operators to trace cross-border digital payments, (3) ensure that all qualifying transactions attract the correct VAT, which is collected and remitted to GRA, and (4) provide GRA and policymakers with a real-time compliance dashboard showing registered verses unregistered suppliers and transaction volumes.
Furthermore, GRA has collaborated with both local and international stakeholders to ensure successful implementation of e-commerce in Ghana. These include Relevant Regulatory bodies (e.g. National Communication Authority-NCA), International Organizations (e.g. African Tax Administration Forum-ATAF, Organisation for Economic Co-operation and Development-OECD, Foreign Commonwealth and Development Office-FCDO), The Technology Partners (e.g. Huawei Technologies Ghana) Ltd), Banks & Payment Processors (e.g. Bank of Ghana), Telcos and Mobile Money Operators (e.g. MTN, Telecel), Local E-Commerce Platforms and Associations (e.g. Ghana Internet Service Providers Association-GISPA and E-commerce Association of Ghana), International Suppliers and consumers.
To make significant in rolls into this complex industry and improve compliance, it is recommended that GRA adopts the following measures: (1) Develop a simplified, effective and efficient mechanism to identify, assess and collect taxes from e-commerce entities, (2) Institute a destination-based income tax and taxing owners of online portals and (3) Adopt best practices for monitoring and supervising e-commerce taxpayers. All in all, e-commerce has become one of the inevitable means of transacting businesses worldwide including Ghana and GRA must positioned itself to harness the tax revenue potential of the sector.
By Dr. Alex Moyem Kombat
Assistant Commissioner of Research & Policy
Ghana Revenue Authority0249-644467/alex.kombat@gra.gov.gh
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