Important Notice: VAT on Non-Life Insurance Policies Effective 1st April 2025

We wish to remind our valued clients that, effective 1st April 2025, the Ghana Revenue Authority (GRA) has implemented Value Added Tax (VAT) at a rate of 21.9% on all non-life insurance policies, excluding motor insurance, in accordance with the Value Added Tax (Amendment) Act, 2023 (Act 1107).

To help you better understand how this impacts your non-life insurance premiums, below is a breakdown of the applicable tax components:

Breakdown of the 21.9% VAT Rate
The total tax rate of 21.9% is derived from the following statutory levies:

National Health Insurance Levy (NHIL) – 2.5% (applied on premium)

GET Fund Levy – 2.5% (applied on premium)

COVID-19 Levy – 1% (applied on premium)

VAT (15%) – Applied to the total of the insurance premium + NHIL + GET Fund Levy + COVID-19 Levy

Illustrative Example
Let’s assume your non-life insurance premium is GHS 20,000.00. The tax effect would be as follows:

Calculation Amount (GHS)
Basic Premium 20,000.00
NHIL + GET Fund Levy + COVID-19 Levy (6%) 1,200.00
Subtotal (Premium + Levies) 21,200.00
VAT (15% of Subtotal) 3,180.00
Total Amount Payable 24,380.00
We are committed to supporting you through this transition. Should you require any further clarification or assistance, please do not hesitate to contact us:

📞 Customer Service Line: 050-957-0353
📧 Email: kek@kekgroup.net

Thank you for your continued trust in KEK Insurance Brokers.