Govt imposes 21% VAT on Facebook ads for business and personal use

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Meta platforms has announced that beginning August 1, 2023 it will start collecting value-added tax (VAT) and levies for the Ghana government on all adverts posted in its platforms in the country. 

In a notice to all users who place adverts on Facebook, Instagram, Messenger, WhatsApp and recently Threads, Meta said “Due to implementation of a Value Added Tax (VAT) in Ghana, Meta is required to charge VAT and levies on the sale of ads to advertisers, regardless of whether you’re buying ads for business or personal purposes.”

The notice added that “All advertisers with a business in the country of Ghana will be charged an additional 2.5% National Health Insurance Levy (NHIL), 2.5% Ghana Education Trust Fund (GETFund), 1% COVID-19 Health Recovery Levy (COVID-19 HRL), and 15% Value Added Tax (VAT) on advertising services purchased beginning 1 August 2023.”

This will also affect any other Adverts Display Network that serves Meta Ads.

This means, in total, the government of Ghana will get at least 21% of all the revenue Meta gets from adverts placed on its platforms in Ghana.

Meta however noted that those who are registered for VAT and are entitled to VAT refunds, should provide their names, addresses and VAT ID, which will be put on their your advert receipts, to help them recover any VAT they paid to the Ghana Revenue Authority (GRA) through Meta.

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