What is the VAT threshold for small businesses in Ghana?

Under Act 1151, many goods businesses must register for VAT when annual turnover reaches GHS 750,000. Service businesses often register regardless of turnover. CediWise tracks your running total and warns you as you approach the limit.

How does CediWise calculate VAT?

You log sales and expenses. The app applies 20% VAT rules (including NHIL, GETFund, and COVID-19 levies where relevant) for inclusive or exclusive amounts so you do not have to do it on a calculator each time.

Back to home

SME Ledger

Run your business smarter.

Stay on top of expenses and cash flow. Sales, costs, VAT, and records in one place.

What you get

Sales and expenses

Record money in and money out. Tag by category so reports make sense later.

VAT handled for you

20% VAT calculated on eligible amounts. Less manual math, fewer mistakes.

GHS 750K alert

Running turnover total with a heads-up before you cross VAT registration territory.

Monthly profit snapshot

Revenue minus expenses for the month. See if the business actually made money.

CSV for your accountant

Export records instead of handing over a worn notebook.

Side hustle friendly

For traders, freelancers, and small shops. No accounting degree required.

VAT rate (Act 1151)

20% automatic

Turnover watch

GHS 750K alert

What this is

A simple business notebook inside your phone. You record sales (money coming in) and expenses (money going out). CediWise adds up totals, applies VAT where needed, and shows whether the month was profitable. Built for market women, online sellers, freelancers, and anyone running a side business alongside a salary.

How it works (step by step)

1. Log a sale. Amount, date, what you sold. Mark if VAT applies.

2. Log an expense. Stock, delivery, airtime, packaging, transport. Same idea.

3. Check your dashboard. Total sales, total costs, estimated profit. VAT collected or owed where relevant.

4. Watch turnover. If you sell goods and approach GHS 750,000 in annual turnover, the app warns you. Service businesses often need VAT registration earlier; the ledger still keeps your records straight.

VAT in plain language

VAT is a tax on sales. Registered businesses charge it, file returns, and pay GRA. Getting the maths wrong or missing registration can mean penalties. The ledger does the 20% calculation on each entry so your notebook matches what an auditor would expect.

Why records matter

GRA can ask for proof of income and expenses. A fine for late filing or poor records costs more than years of app subscription. Digital records also help when you apply for a loan or need to show a partner how the business is doing.

Works well with

Salary calculator if you also earn a wage.
Budgeting tool to separate personal spending from business cash.
Financial literacy for VAT and MoMo basics.