GRA to Introduce 15% VAT on Non-Life Insurance Premiums Starting July 1, 2025
The Ghana Revenue Authority (GRA) has announced the introduction of a 15% Value Added Tax (VAT) on non-life insurance premiums, effective July 1, 2025.
In a statement shared on its social media platforms, the GRA stated:
“Starting July 1, 2025, a 15% VAT will be applied to non-life insurance premiums in Ghana.”
The new tax will apply to property, health, and travel insurance. However, motor insurance will remain exempt from the VAT.
According to the GRA, the measure forms part of efforts to enhance domestic revenue mobilization and to meet targets outlined in the 2025 national budget.
What Does This Mean for Policyholders?
With the implementation of this VAT, individuals and businesses purchasing non-life insurance policies will incur an additional 15% charge on their premiums. This means a rise in the cost of obtaining insurance coverage for non-life risks such as property damage, health emergencies, and travel-related incidents.
While this move may increase the financial burden on policyholders, the government views it as a necessary step toward broadening the tax base and supporting national development efforts.
