Starting March 1, 2025, Amazon Web Services (AWS) will begin charging Value Added Tax (VAT) and additional levies on its cloud services for businesses and individuals in Ghana, significantly increasing costs for local customers.
In an official statement, AWS confirmed it will apply a 15% VAT on all sales of its services to customers in Ghana. On top of that, a 6% levy will be added, covering the National Health Insurance Levy, Ghana Education Trust Fund Levy, and the COVID-19 Health Recovery Levy.
As the world’s leading cloud computing platform, AWS provides critical computing power, storage, and networking services to businesses, governments, and individuals around the globe. The move to implement these taxes aligns with Ghana’s local tax regulations and ensures the company’s compliance with the country’s laws.
However, the change will likely have financial implications for Ghanaian businesses that rely heavily on AWS for their digital infrastructure. They will now face higher operational costs as a result of these new taxes.
Beginning March 2025, AWS will start issuing VAT invoices to customers in Ghana. To avoid any disruptions, businesses and individuals are advised to update their AWS accounts with their Tax Registration Number (TRN) before the deadline in order to facilitate VAT deductions.
