VAT on Non-Life Insurance Services – Effective 1st July 2025

Effective 1st July 2025, all non-life insurance services (excluding motor insurance) provided by SanlamAllianz General Insurance Ghana will attract an effective Value Added Tax (VAT) rate of 21.9%, in compliance with the Value Added Tax (Amendment) Act, 2023 (Act 1107).

This implementation follows the Ghana Revenue Authority’s (GRA) directive to extend VAT to non-life insurance policies in line with national tax reforms.

Tax Breakdown:

The applicable taxes are as follows:

• National Health Insurance Levy (NHIL) – 2.5%
• Ghana Education Trust Fund Levy (GETFund Levy) – 2.5%
• COVID-19 Health Recovery Levy (CHRL) – 1%
• Value Added Tax (VAT) – 15% (applied after the above levies)

How the 21.9% is Calculated:

Example – For a premium of GHS 100:

1. Add levies before VAT:
   • NHIL: GHS 2.50
   • GETFund: GHS 2.50
   • CHRL: GHS 1.00
     Subtotal: GHS 106.00
2. Apply VAT (15%) on GHS 106 = GHS 15.90

Total Tax = GHS 6 (levies) + GHS 15.90 (VAT) = GHS 21.90

Effective Tax Rate = 21.9%

SanlamAllianz is committed to transparency and to supporting our clients with relevant information to make informed insurance decisions.

For further inquiries, please contact your SanlamAllianz representative or our customer service team:

Call: 0302 226 942 / 050 160 1810
Email: infoghana@gh.sanlamallianz.com

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