In a recent communication to its Ghanaian customers, Amazon Web Services (AWS) announced that starting March 1, 2025, it will begin applying multiple taxes on cloud services provided to businesses and individuals in Ghana. These levies include the National Health Insurance Levy (NHIL), the Ghana Education Trust Fund (GETFund) Levy, and the COVID-19 Health Recovery Levy, each at 2.5%, in addition to the 15% Value Added Tax (VAT).
According to the notice, the change applies to AWS accounts that are located in Ghana and that use AWS services within the country. Customers are urged to update their internal accounting, accounts payable, and vendor management systems to reflect these charges and to include a Tax Registration Number (TRN) if applicable.
What It Means for Businesses and Customers
Ghanaian businesses relying on AWS for their digital infrastructure, such as data storage, computing power, and application hosting, will see an immediate increase in monthly invoices. The added taxes are expected to raise operational costs and could potentially influence how companies budget for cloud services.
Also, startups and small-to-medium enterprises (SMEs) that heavily depend on cloud-based tools may need to pass on some of these additional expenses to their end users or clients. In highly competitive industries, absorbing the extra costs might become increasingly challenging, leading to possible price increases for digital services.
With AWS calling for updated tax information, businesses must ensure proper documentation and compliance to avoid any service interruptions. This will require close collaboration between finance teams and cloud administrators to accurately integrate the new taxes into their billing and accounting workflows. However, the move is conflicted with Ghanaians loud call on the removal of certain taxes particularly the COVID-19 Health Recovery Levy which has been labeled many times as an obnoxious tax.
The collection of NHIL, GETFund, COVID-19 Health Recovery Levy, and VAT from major cloud providers like AWS could signal a major move by customers and businesses to move to less taxed platforms.
Impact on Ghana’s Tech Landscape
While AWS remains a key enabler of digital transformation in Ghana, the introduction of these taxes may prompt some businesses to explore alternative cloud providers or hybrid cloud solutions to manage costs. Larger enterprises with robust budgets might absorb the increase more easily, but SMEs and startups could find it more difficult to shoulder the new levies. The new levies could also be an advantage to startups in the field to leverage on it and provide a less taxed platform.
Nevertheless, some businesses who might find AWS’s services in high reliability, global reach, and service variety may move on with it as its benefits will outweigh the costs, especially for businesses that rely on stable and scalable infrastructure to remain competitive.
This move could lead also to a more structured environment where businesses factor in taxation from the outset when adopting cloud solutions.
Customers are however encouraged to review the official AWS documentation on tax compliance and consult with accounting professionals to ensure they meet all legal requirements. As March 1 approaches, companies should prepare for the upcoming adjustments to maintain smooth operations and financial transparency.
