The verdict in three sentences
A mobile money collection is a tax-inclusive amount that carries Ghana's standard VAT 15% plus NHIL, GETFund and COVID levies (~21.9% effective), which must be isolated from net revenue and MoMo fees. The invoice must show base, rate, tax and total, and be GRA-compliant. Whether you use the standard rate or the VAT flat rate scheme of 3% for small retailers depends on your turnover and shapes your obligations.
Break down a tax-inclusive collection
The habit to build: every payment received splits into distinct blocks. Take a GHS 121.90 collection under the standard regime.
| Element | Basis | Amount |
|---|---|---|
| Gross collected (incl. tax) | base | GHS 121.90 |
| VAT + levies (~21.9%) | on net base | ~GHS 21.90 |
| Net revenue | base | GHS 100.00 |
| MoMo fee (~1%) | on gross | ~GHS 1.22 |
| Bank net | gross - fee | ~GHS 120.68 |
The tax portion is not income: it is a liability to the GRA. The MoMo fee is a deductible expense. Blending these flows distorts both profit and the VAT return.
Schemes and thresholds: what changes your duties
Your regime decides whether and how you charge tax. Here is the 2026 ballpark (confirm with the GRA).
| Scheme | Indicative turnover | Rate | Invoicing |
|---|---|---|---|
| VAT flat rate scheme | small retailers/wholesalers | 3% flat | simplified VAT invoice |
| Standard VAT + levies | above threshold | 15% VAT + NHIL/GETFund/COVID (~21.9%) | full GRA invoice |
| Not registered | below threshold | out of scope | basic receipt |
Moving between schemes changes your mandatory invoice fields and filing rhythm. Treat these as 2026 markers and confirm your exact position with the GRA or your accountant.
Mandatory invoice fields
A compliant GRA invoice shows: seller name and TIN, customer details, date and sequential number, description, quantity, unit price, VAT/levy rate and amount, net total, tax total and gross total. The payment method (MoMo) helps the audit trail but never replaces these fields.
Mini case study
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Ama runs a fashion shop in Accra on the standard regime. In January 2026 she collects GHS 24,380 tax-inclusive via MoMo. Her output tax at ~21.9% on the net base is roughly GHS 4,380, and net revenue is GHS 20,000. She recovers GHS 1,100 of input VAT on purchases and remits about GHS 3,280 to the GRA. Had she treated GHS 24,380 as revenue, she would have overstated profit by GHS 4,380 and forgotten a tax liability of GHS 3,280: a double assessment risk.
FAQ
Are MoMo fees subject to VAT?
The fee charged by the operator is an expense to you; the VAT you collect is on the sale price to the customer, not on the fee. Record them separately.
Do I charge VAT under the flat rate scheme?
Yes, at 3% flat, but you generally cannot reclaim input VAT under that scheme. Confirm your exact scheme before showing any rate on an invoice.
How do I prove collections in an audit?
Keep the MoMo export, numbered invoices and the bank reconciliation. Consistency across these three sources is your best protection.
Is VAT computed on the gross or the net?
VAT and levies apply to the net base. From a tax-inclusive figure, divide by 1.219 to find the net, then apply the rate. Never take 21.9% of the gross directly.
What if I switch schemes mid-year?
Your invoicing and filing duties change from the switch date. Plan with your accountant so you do not mix two treatments in one period.
Let's talk about your project. We configure your online store to split net revenue, VAT and operator fees automatically. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
