The Electronic Invoicing System (E-VAT) in Ghana
Ghana is undergoing a profound transformation of its tax system, led by the Ghana Revenue Authority (GRA), with the aim of modernizing tax administration, reducing tax evasion, and sustainably broadening the tax base. This structural reform is built on two fundamental and complementary pillars: the implementation of the electronic invoicing system (E-VAT) and the full enforcement of the Fiscal Electronic Devices Act (FED Act).
Both regulatory frameworks are closely interconnected. The FED Act establishes the mandatory capture of transaction data at the point of sale through approved fiscal electronic devices, ensuring data integrity, traceability, and security. The E-VAT system, in turn, acts as a centralized platform operated by the GRA that receives, validates, and supervises this data in near real time. Together, these mechanisms create a complete audit trail that begins at the taxpayer’s cash register and ends within the tax authority’s systems.
Ghana’s electronic invoicing system, officially known as E-VAT, was introduced through an amendment to the VAT Act 870 and came into force in October 2022. It is a real-time validation model that requires VAT-registered businesses to connect their invoicing systems or points of sale directly to the GRA platform. Each invoice or credit note issued must be validated by the tax authority, which assigns a unique Sales Data Controller (SDC) code together with a QR code. These elements guarantee the authenticity of the document and facilitate its verification.
In addition to invoice and credit note validation, the E-VAT system imposes additional reporting obligations, such as the periodic transmission of information related to inventories and purchases. This allows the GRA to cross-check data and proactively detect potential inconsistencies or tax risks.
Complementing this framework, the GRA has announced that the full nationwide and mandatory enforcement of the FED Act of 2018 is planned for early 2026. This legislation requires the use of approved physical devices at each point of sale, strengthening control over commercial operations and ensuring that all transactions are recorded in a complete and tamper-proof manner.
The GRA’s strategic objective is to obtain real-time visibility into VAT-taxable transactions. This enables continuous monitoring of sales, reduces revenue leakage, and improves the effectiveness of audit processes. At the same time, the reform aims to increase transparency within the tax system, broaden the taxable base by capturing previously undeclared transactions, and, in the long term, simplify tax compliance for taxpayers through more automated and standardized processes.
Implementation Timeline of the Electronic Invoice in Ghana
The implementation of the E-VAT system has followed a phased approach, starting with a pilot project and gradually expanding to include a growing number of taxpayers. This approach has allowed the GRA to test the model, optimize the technological infrastructure, and resolve operational issues before large-scale deployment.
- Phase 1 (Pilot): The E-VAT pilot project was launched on October 1, 2022, with an initial group of 50 large companies. It was later expanded to include 600 taxpayers, and training seminars were organized to support the onboarding process.
- Phase 2 (Expansion): Expansion to mid-sized taxpayers began at the end of 2023. In September 2024, the GRA announced the onboarding of an additional 2,000 taxpayers into the system. By June of that year, around 600 companies were already required to issue electronic invoices validated through the E-VAT platform.
- Phase 3 (Full Coverage): The GRA’s final objective is to achieve full coverage of all VAT-registered businesses. Although the initial plan aimed for completion in 2024, the full rollout is being consolidated progressively, with expectations to onboard up to 40,000 taxpayers by the end of 2025, laying the foundations for a fully digital tax control model in Ghana.
Electronic Invoice Validation Model in Ghana
Ghana’s E-VAT system is based on a centralized real-time validation model, managed directly by the Ghana Revenue Authority (GRA). For an electronic invoice to be considered valid for tax purposes, it must meet a set of technical, structural, and content requirements defined by the tax administration, and it must be transmitted and approved before final issuance.
Each invoice or credit note sent to the system is validated individually by the GRA. Once validated, the tax authority incorporates a unique identifier known as the Sales Data Controller (SDC) code. This identifier serves as official proof of validation and includes several security elements, such as a timestamp, a QR code, and the signature of the Commissioner General, ensuring the authenticity, integrity, and immutability of the tax document throughout its lifecycle.
This model allows the GRA to exercise effective control over VAT-taxable transactions, while providing businesses with a clear and standardized framework for issuing valid tax documents, reducing compliance risks and potential penalties.
The EDICOM global electronic invoicing platform is ready to connect directly with the GRA, facilitating both the submission of electronic documents for validation and their subsequent distribution to end customers. Through an integrated solution, companies can fully automate their invoicing processes, ensuring compliance with Ghana’s electronic VAT requirements without significantly altering their internal operational workflows.
This comprehensive approach enables companies to comply efficiently, securely, and at scale with Ghana’s real-time validation model, aligning invoicing processes with current and future regulatory requirements.
The process is structured as follows:
- Data extraction from the ERP: The company generates a file from its enterprise resource planning (ERP) system containing the data required to issue electronic invoices, in line with its internal processes.
- Transformation and submission to the GRA: EDICOM receives this file and transforms it into the format and standard required by the GRA, performing prior semantic and consistency validations. Once validated, the document is automatically submitted to the GRA portal for approval.
- Receipt of the validated document: Following validation by the GRA, EDICOM receives the document together with the assigned SDC code. This information can be reintegrated into the issuer’s ERP or embedded directly into the PDF invoice sent to the customer.
- Electronic archiving and retention: Finally, EDICOM ensures the secure archiving of electronic documents for the legally required retention period in Ghana, which is six years, ensuring availability for audits, inspections, or future queries.
Operational and Financial Benefits
The Ghana Revenue Authority (GRA) has launched an ambitious tax digitalization strategy designed as a long-term transformation process. This roadmap began with the implementation of the Taxpayer Portal (TPP) and the Ghana.Gov payment platform, initiatives aimed at simplifying tax filing, improving traceability, and streamlining tax payments. The introduction of the E-VAT electronic invoicing system and the progressive enforcement of the Fiscal Electronic Devices Act (FED Act) represent the most critical phases of this strategy, as they bring automation and tax control down to the level of each individual transaction.
The transition to the E-VAT model, together with the mandatory use of fiscal devices, delivers significant operational benefits for companies that adapt effectively. Automating invoice issuance and near real-time validation substantially reduces administrative burden, limits reliance on manual processes, and minimizes human error. As a result, organizations can optimize workflows, improve operational efficiency, and allocate more resources to higher-value activities.
From a financial and accounting perspective, the system strengthens the quality and consistency of tax information, enabling more accurate and up-to-date accounting. Data standardization and direct transmission to the GRA help reduce compliance costs, simplify the preparation of periodic returns, and accelerate VAT refund processes by reducing discrepancies and follow-up information requests from the tax authority.
These reforms also introduce relevant financial incentives for the business sector. Proposed regulatory changes, expected to be presented to Parliament in October, aim to reduce the effective VAT rate from 21.9% to 20% and establish a full deductibility regime. This measure seeks to ease the tax burden, improve corporate liquidity, and enhance the attractiveness of the Ghanaian economic environment, particularly for international investors and operators.
From the tax administration’s perspective, the GRA’s primary objective is to gain real-time visibility into VAT-taxable transactions, enabling continuous monitoring of sales and minimizing revenue leakage. However, the scope of this transformation goes beyond tax control alone. By improving transparency, broadening the tax base through the capture of previously undeclared transactions, and simplifying compliance processes, the GRA aims to foster voluntary compliance and build a more collaborative relationship with taxpayers.
Ultimately, this approach lays the foundations for a fairer, more predictable, and more competitive business environment, in which technology acts as an enabler for both the tax administration and the companies operating in Ghana.
