Business News

Government Implements 21% Tax on Facebook Advertisements, Affecting Both Business and Personal Use

Meta Business Suite Implements 21% Added Taxes on Advertisements in Ghana

Beginning August 1, 2023, the business division of Facebook’s parent company, Meta Business, will introduce a 21% total tax on personal and business-related advertisements made on its platform in Ghana.

The decision follows a directive from the Government of Ghana, mandating the implementation of a new Value Added Tax (VAT) for goods and services. As a result, Meta Business is now required to levy VAT charges on ad sales to advertisers, irrespective of whether the ads are for personal or business purposes.

Advertisers with a business country registered in Ghana will face additional taxes, including a 2.5% National Health Insurance Levy (NHIL), 2.5% Ghana Education Trust Fund (GETFund), 1% COVID Health Recovery Levy, and 15% Value Added Tax (VAT) on advertising services purchased from August 1, 2023.

To assist businesses in recovering any VAT they paid to the Ghana Revenue Authority, the email from Meta Business emphasized that advertisers registered for VAT can provide their name, address, and VAT ID. By doing so, this information will be included on their ad receipts.

Additionally, Meta Business provided instructions on how customers can add their VAT ID to their respective accounts for smooth VAT recovery processes.

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