Wisdom Kpano, Partner, Tax and Legal at Deloitte, has urged all non-life insurance companies to establish a Robust System Readiness Assessment to identify the required updates on the back of the Value Added Tax (VAT) on general insurance products.
According to him, the system updates should prioritise Enterprise Resource Planning (ERP) to accurately reflect the changes.
The Ghana Revenue Authority announced in March 2025 that all non-life insurance products, excluding motor insurance, will attract VAT and applicable levies under the VAT (Amendment) Act 2023 (Act 1107). The implementation of the VAT and applicable new levies commenced in July 2025.
The total VAT rate applied to non-life insurance services is 21%. However, the effective rate is 21.9% due to the method used in calculating the VAT.
Speaking at an insurance forum organised by the Ghana Insurance Association, Mr. Kpano said the timely implementation of the updates is necessary to ensure prompt execution of the new levy. This is to avoid any payment in the future due to failure to charge the VAT.
He also encouraged the insurance firms to implement a process for regular reporting on compliance status and identified risks to senior management.
On compliance framework, he urged them to strengthen internal controls, document the VAT processes, and also assign clear responsibilities to ensure ongoing compliance.
The Commissioner of the National Insurance Commission, Dr. Abiba Zakariah, urged all non-life insurance firms to embrace the new VAT.
She, however, advised them to deepen the trust and confidence among the consuming public to enhance insurance penetration.
The new VAT on non-life insurance products forms part of a broader government effort to widen the tax net and improve domestic revenue mobilisation.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
