AWS Imposes 21% Tax On Ghana, Startups Brace For Impact

Amazon Web Services (AWS) will introduce a 21 per cent tax on cloud services for customers in Ghana starting March 1, 2025.  The change is part of Ghana’s broader tax policies, which have already made compliance costly for businesses

The tax includes a 15 per cent Value Added Tax (VAT) and an additional 6 per cent in levies, covering the National Health Insurance Levy, the Ghana Education Trust Fund Levy, and the COVID-19 Health Recovery Levy.

This move is expected to increase operational costs for Ghanaian businesses that rely on AWS for cloud services. Many companies, including tech startups, use AWS for development, deployment, and data storage. The new tax could strain their budgets, making it harder to scale operations and innovate.

To navigate these changes, businesses should update their AWS accounts with their Taxpayer Registration Number (TRN) before the deadline to facilitate VAT deductions. Consulting internal tax and accounting teams can also help ensure compliance and avoid penalties.

AWS remains the world’s leading cloud computing platform, offering over 200 fully featured services from data centers worldwide. Many businesses in Ghana rely on AWS for its reliability, scalability, and security, making the tax policy a significant concern for the local tech industry.

The introduction of the tax reflects the increasing focus of African tax authorities on digital services. Ghanaian tech companies must quickly adapt to these changes or risk higher costs that could hinder innovation and competitiveness in the global market.