The Government of Ghana has introduced a new tax policy that will see advertisements on Facebook and other social media platforms taxed.
According to the new policy, Meta, the parent company of Facebook, will be required to charge a 15% Value Added Tax (VAT) on all advertising services purchased by advertisers in Ghana.
In addition to the VAT, advertisers will also be charged a 2.5% National Health Insurance Levy (NHIL), a 2.5% Ghana Education Trust Fund (GETFund), and a 1% COVID-19 Health Recovery Levy (COVID-19 HRL).
The new policy will take effect from 1st August 2023, and all advertisers with a business country of Ghana will be required to pay the taxes.
Advertisers who are registered for VAT and provide their name, address, and VAT ID will have their details reflected on their ad receipts.
The imposition of taxes on Facebook ads is part of the government’s efforts to widen the tax net and increase revenue generation.
See also: How to Retrieve a Hacked Facebook Account and Secure It
The move is expected to generate significant revenue for the government, which can be used to fund various developmental projects in the country.
The introduction of taxes on Facebook ads has received mixed reactions from stakeholders. While some have welcomed the move as a step towards increasing revenue for the government, others have expressed concerns that it may discourage businesses from investing in digital advertising.