VAT Calculator Ghana

Ghana has 15% standard Value Added Tax rate. But an additional National Health Insurance Scheme Levy (NIHL) is charged on goods and services supplied in or imported into the country. So the effective VAT rate is at 17.5%. This tax rate came in to implementation from December, 2013. The standard tax rate was previously at 12.5%. VAT is governed by Ghana Revenue Authority (GRA).

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Ghana has 15% standard Value Added Tax rate. But an additional National Health Insurance Scheme Levy (NIHL) is charged on goods and services supplied in or imported into the country. So the effective VAT rate is at 17.5%. This tax rate came in to implementation from December, 2013. The standard tax rate was previously at 12.5%. VAT is governed by Ghana Revenue Authority (GRA).

Formula:

Add Tax Tax Amount = ( Original Cost * VAT% ) / 100 Net Price = Original Cost + Tax Amount
Remove Tax Tax Amount = Original Cost - ( Original Cost * ( 100 / ( 100 + VAT% ) ) ) Net Price = Original Cost - Tax Amount

Example

Find the VAT price and net price in Ghana (GST % is 17.5) for an amount of 25000

Add Tax

Solution :
GST % = 17.5
Amount = 25000

Step 1 :
GST Price = (25000 * 17.5 ) / 100
     = 4375

Step 2 :
Net Price = 25000 + 4375
     = 29375

Hence the VAT Price is 4375 and Net Price is 29375

Remove Tax

Solution :
GST % = 17.5
Amount = 25000

Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 17.5)))
                 = 25000 - (25000 * 0.85)
                 = 25000 - 21276.6
                 = 25000 - 21276.6
GST Price = 3723.4

Step 2 :
Net Price = 25000 - 3723.4
                = 21276.6

Hence the VAT Price is 3723.4 and Net Price is 21276.6


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