Ghanaian ride-hailing drivers for Uber, Yango, Bolt, and other ride-hailing platforms are set to face new tax regulations starting January 1, 2024.
The Ghana Revenue Authority (GRA) announced today that all commercial vehicle owners, including ride-hailing drivers, must pay income tax on a quarterly basis under Section 22 of Regulations 2016, LI 2244 .
The new measures aim to improve tax compliance and ensure fair revenue collection.
The GRA cites Sections 1, 33, and 35 of the Revenue Administration Act, 2016 (Act 915) as amended, which empowers the Commissioner-General to request information and monitor digital platforms for tax purposes.
Ride-hailing companies are now required to:
- Update their platforms to require proof of paid Vehicle Income Tax (VIT) for all drivers and vehicles.
- Demand a digital copy of the VIT sticker from drivers.
- Validate the authenticity of VIT stickers with the GRA.
- Submit quarterly lists of all vehicles registered on their platform to the GRA.
For drivers, the new process involves:
A one-time registration of their ride-hailing vehicle at any GRA office.
- Payment of VIT using the shortcode 222#.
Failure to comply with these regulations could result in penalties for both drivers and ride-hailing companies. The GRA encourages all drivers and companies to register their vehicles and update their platforms before the January 1 deadline.
For further information, drivers can contact the GRA Head Office in Accra or call the toll-free number 0800-900-110.
Read the entire statement below;
Integrity. Fairness. Service.
PAYMENT OF VEHICLE INCOME TAX (VIT) BY RIDE HAILING VEHICLE OWNERS
The Ghana Revenue Authority (GRA) wishes to bring to the attention of the general public, especially ride hailing vehicle owners (Uber, Yango, Bolt etc) that, pursuant to Section 22 of Regulations 2016, LI 2244, any commercial vehicle owner that earns income from the operation of a commercial vehicle shall pay income tax on quarterly basis.
Also, Sections 1, 33 and 35 of the Revenue Administration Act, 2016 (Act 915) as amended, gives the Commissioner General the authority to give written directives, require any taxpayer to provide information or connect their digital system to the Commissioner General's monitoring platform for the purposes of establishing the correct taxes payable to the State.
GRA therefore entreats all ride hailing companies that operate in Ghana to update their digital platforms to require evidence of payment of Vehicle Income Tax (VIT) for both existing and new vehicles.
Ride hailing companies are entreated to follow the underlisted guidelines:
- Entities are to de- mand a softcopy of the VIT sticker.
- Entities are to validate the authenticity of stickers with the GRA.
- Entities are to submit the list of all vehicles on their platform quarterly to GRA.
All ride hailing companies are to kindly note that these requirements will take full effect on Monday, January 1, 2024.
In this regard, all owners of ride hailing vehicles that operate in Ghana are to carry out a onetime registration of their vehicles at any GRA office to enable them make payment for VIT using the shortcode *222#.