Uber, Bolt, Yango drivers in Ghana to pay Value Income Tax from January 1, 2024

The Ghana Revenue Authority (GRA) has announced the introduction of the Value Income Tax (VIT) for ride-hailing vehicle owners, as outlined in Section 22 of Regulations 2016, LI 2244.

Effective January 1, 2024, commercial vehicle owners earning income from their operations are required to pay income tax on a quarterly basis. GRA has advised companies like Uber, Yango, and Bolt to promptly update their digital platforms to accommodate the newly implemented tax regulations.

The GRA specified “Sections 1, 33 and 35 of the Revenue Administration Act, 2016 (Act 915) as amended, gives the Commissioner General the authority to give written directives, require any taxpayer to provide information or connect their digital system to the Commissioner General’s monitoring platform for the purpose of establishing the correct taxes payable to the state”.

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Compliance procedures for ride-hailing companies

To adhere to the upcoming tax policy, ride-hailing companies must acquire a digital copy of the VIT sticker, verify its legitimacy with the GRA, and furnish the GRA with a quarterly roster of all vehicles operating on their platforms.

“Failure to comply with these regulations could result in penalties for both drivers and ride-hailing companies”, the statement reads.

The GRA stresses that the enforcement of these obligations is set to commence on January 1, 2024.

In connection with this, all operators of ride-hailing vehicles in Ghana are required to undergo a single registration of their vehicles at any GRA office. This registration facilitates VIT payments through the shortcode *222#.

Furthermore, the statement added that individuals can reach out to the GRA Head Office, located near Accra Sports Stadium on Starlets 91 Road in Ministries, or contact the toll-free number 0800-900-110, or send inquiries via email to info@gra.gov.gh.

Navigating Value Income Tax in Ghana

The Value Income Tax (VIT) was introduced for ride-hailing vehicle owners in Ghana, with the Ghana Revenue Authority (GRA) emphasizing the need for educational resources.

VIT entails quarterly income tax payments, aiming to boost fiscal responsibility in the industry and contribute to the broader economy. Recognizing varying financial literacy levels, GRA suggests workshops, online platforms, and educational materials to aid understanding, offering benefits like compliance assurance and transparent communication.

Ride-hailing companies, including Uber, Yango, and Bolt, are encouraged to actively participate in this educational effort for a smooth transition to the new taxation landscape.

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