NHIL and GETFund: The Two Taxes Hiding Inside Every VAT Receipt in Ghana

If you've ever looked closely at a VAT invoice in Ghana, you'll notice more than just the standard 15% VAT. Hidden within that receipt are two additional levies: the National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund Levy (GETFund). Together, they form a distinctive part of Ghana's VAT structure that sets it apart from most of its neighbours.

Understanding how these levies work isn't just for accountants—it's essential for business owners, finance professionals, and anyone who wants to make sense of what they're actually paying. In this guide, I'll walk you through the legal basis, current rates, calculation methods, and real-world examples so you can read every VAT receipt with confidence.

What Are NHIL and GETFund?

NHIL and GETFund are statutory levies established under Ghanaian law to fund specific public services. They appear on VAT invoices but operate under separate legal frameworks from the standard VAT charge.

National Health Insurance Levy (NHIL)

The NHIL was created to support the National Health Insurance Scheme (NHIS), which provides healthcare coverage to Ghanaians. According to the National Health Insurance Act, 2003 (Act 650) as amended, the levy is imposed on the supply of goods and services, as well as on imports. The current rate is 2.5% of the taxable value.

Ghana Education Trust Fund Levy (GETFund)

GETFund was established under the Ghana Education Trust Fund Act, 2000 (Act 581) to provide supplementary funding for educational infrastructure and programs across the country. Like NHIL, it applies at 2.5% on the same taxable base as VAT.

Both levies are administered by the Ghana Revenue Authority (GRA) alongside VAT, which is why they appear together on the same invoice.

The 2026 VAT Reform: What Changed?

Ghana's VAT system underwent significant reforms effective 1 January 2026 under the Value Added Tax Act, 2025 (Act 1151). These changes directly affected how NHIL and GETFund are calculated and treated for tax purposes.

Key Changes Under Act 1151

• Recoupling to VAT Base: Prior to 2026, NHIL and GETFund were "decoupled," meaning they were calculated on a different base and could not be claimed as input tax. From 1 January 2026, both levies were recoupled to the VAT base, allowing registered businesses to claim them as input tax credits.

• Abolition of COVID-19 Health Recovery Levy: The 1% COVID-19 Health Recovery Levy was removed, reducing the overall VAT-family rate.

• Effective Rate Reduction: The combined effective rate dropped from approximately 21.9% to a flat 20% for standard-rated supplies (15% VAT + 2.5% NHIL + 2.5% GETFund).

• Input Tax Deductibility: Manufacturing and other VAT-registered entities can now deduct NHIL and GETFund paid on local purchases as input tax, improving cash flow by roughly 4–5% on qualifying transactions.

These reforms were designed to simplify compliance, reduce the tax burden on businesses, and align Ghana's VAT system with international best practices.

How the 20% VAT Stack Works in Practice

For a standard-rated supply in Ghana, the total charge is now 20% of the tax-exclusive (taxable) value, broken down as follows:

Worked Example: Local Supply

Let's say you purchase office equipment for GHS 10,000 (tax-exclusive). Here's how the charges break down:

• VAT (15%): GHS 1,500
• NHIL (2.5%): GHS 250
• GETFund (2.5%): GHS 250
• Total Tax: GHS 2,000
• Invoice Total: GHS 12,000

If you're a VAT-registered business, you can now claim the full GHS 2,000 (including NHIL and GETFund) as input tax against your output VAT liability, subject to the conditions in Act 1151.

NHIL and GETFund on Imports

Imports are treated differently from local supplies, and the calculation base expands to include customs duties. According to the Value Added Tax Act, 2025 (Act 1151) and related customs legislation, NHIL, GETFund, and VAT on imports are calculated on the dutiable value, which is the CIF (Cost, Insurance, and Freight) value plus import duty.

Import Calculation Example

Suppose you import goods with a CIF value of GHS 50,000 and an import duty of GHS 10,000. The dutiable value becomes GHS 60,000.

• NHIL (2.5%): GHS 1,500
• GETFund (2.5%): GHS 1,500
• VAT (15%): GHS 9,000
• Total Levies + VAT: GHS 12,000
• Total Payable at Customs: GHS 72,000 (CIF + Duty + Levies + VAT)

Note that additional levies such as ECOWAS and EXIM may also apply depending on the product category, but NHIL, GETFund, and VAT are calculated on the same dutiable value.

Who Must Charge and Pay These Levies?

Under the Value Added Tax Act, 2025 (Act 1151), any person or entity making taxable supplies above the registration threshold must register for VAT and charge VAT, NHIL, and GETFund on their invoices.

VAT Registration Threshold

As of 2026, the VAT registration threshold for businesses dealing in goods is GHS 750,000 in annual taxable turnover. This threshold was aligned with the presumptive tax regime to simplify compliance for small businesses.

Businesses below this threshold may operate under the presumptive tax regime or remain unregistered, but they cannot charge VAT or claim input tax credits.

Exempt and Zero-Rated Supplies

Not all supplies attract VAT, NHIL, or GETFund. Certain goods and services are exempt or zero-rated under Act 1151. Examples include:

• Basic food items
• Healthcare services
• Educational services
• Exports (zero-rated)

If you supply exempt goods, you do not charge VAT, NHIL, or GETFund, but you also cannot claim input tax on related purchases.

How to Read Your VAT Invoice

A compliant VAT invoice in Ghana must clearly show the breakdown of VAT, NHIL, and GETFund. Here's what to look for:

• Tax-exclusive value: The base amount before any taxes or levies.
• VAT (15%): Shown separately.
• NHIL (2.5%): Shown separately.
• GETFund (2.5%): Shown separately.
• Total tax-inclusive amount: The final amount payable.

If you're using the Ghana VAT Calculator on ToolBase, you can input either the tax-exclusive or tax-inclusive amount to see the full breakdown instantly. This is especially useful for verifying invoices or preparing financial reports.

Common Misconceptions About NHIL and GETFund

Misconception 1: "NHIL and GETFund Are Part of VAT"

While they appear on the same invoice, NHIL and GETFund are separate levies established under different Acts (Act 650 and Act 581, respectively). They are administered together with VAT for convenience but have distinct legal bases.

Misconception 2: "You Can't Claim NHIL and GETFund as Input Tax"

Before 2026, this was true. However, under the 2026 reforms, VAT-registered businesses can now claim NHIL and GETFund as input tax credits, provided the supplies are used for taxable activities.

Misconception 3: "The Rate Is Still 21.9%"

The effective rate of 21.9% included the now-abolished 1% COVID-19 Health Recovery Levy. The current standard rate is 20% (15% VAT + 2.5% NHIL + 2.5% GETFund).

Practical Tips for Businesses

• Update Your Invoicing Systems: Ensure your accounting software reflects the 2026 rates and can separately display VAT, NHIL, and GETFund.

• Train Your Finance Team: Make sure your staff understands the difference between the three charges and how to calculate them correctly.

• Review Import Documentation: For imports, confirm that NHIL, GETFund, and VAT are calculated on the correct dutiable value (CIF + duty).

• Use Available Tools: The Ghana VAT Calculator on ToolBase can help you verify calculations and prepare accurate returns.

Why This Matters for Everyday Ghanaians

Even if you're not a business owner, understanding NHIL and GETFund helps you see where your money goes. Every time you buy goods or services, a portion of what you pay funds healthcare and education through these levies.

According to recent analysis, only about 12 cedis of every 100 cedis collected from import levies is earmarked for NHIL and GETFund, despite their prominent naming on receipts. This highlights the importance of transparency and accountability in how these funds are managed.

Final Thoughts

NHIL and GETFund are more than just line items on a VAT receipt—they're critical funding mechanisms for Ghana's health and education sectors. With the 2026 reforms making them deductible as input tax, businesses now have greater cash flow flexibility, while the overall tax burden on consumers has been slightly reduced.

Whether you're preparing VAT returns, verifying invoices, or simply trying to understand your receipts, knowing how these levies work puts you in a stronger position. For quick calculations, the Ghana VAT Calculator on ToolBase is a free, practical resource built for professionals like you.

This article is for educational purposes only and does not constitute professional advice. Consult a qualified professional for your specific situation.

Last Updated: July 2026