Meta, the parent company of Facebook has announced that starting August 1, 2023, it will charge Value Add Tax (VAT) and levies on sales of ads to advertisers regardless of whether you are buying ads for business or personal purposes.
This decision of taxation on Facebook follows the government’s imposition of 21 percent VAT on advertisements.
In an email from Meta, it added that all advertisers with a business company in Ghana will be charged an additional 2.5% National Health Insurance Levies (NHIL), 2.5% Ghana Education Trust Fund (GET Fund), 1% Covid-19 Health Recovery Levy (Covid-19HRL), and 15% Value Added Tax (VAT) on advertising services purchased from August 1.
The email further noted that “If you are registered for VAT and you provide your name, address, and VAT ID, your name, address, and VAT ID will show up on your ads receipts. If you are entitled to recover VAT, this may help you recover any VAT you pay to the Ghana Revenue Authority. This is if you are a VAT-registered business in Ghana”.
This development from Facebook has generated a mixed reaction on various social media platform following Facebook decision to tax businesses.
According to some users the new taxes will affect many mushroom businesses belonging to the youth in the country, hence the need for an adjustment.