The government of Ghana has implemented the Electronic Levy charges policy today, and charges take effective on this day, being May 1, 2022.
Many friends and Ghanaians are asking about the e-levy and what it entails. So, I made this post to brief you about all you may need to know about the E-Levy with its charges in Ghana on mobile Money and all electronic transactions.
Take your time to go through this article about E-levy Frequently Asked Questions In Ghana for 2022.
What is E-Levy?
The E-Levy is a tax imposed on electronic transfers and charged at the time of the transfer.
Who will pay the E-Levy?
Everyone who uses electronic means of sending money through mobile money or bank accounts.
How much will we pay for the E-Levy?
The E-Levy is 1.5% of all cumulative daily transfers of more than GHS 100. For example, if a person sends GHS 50 for the first time during the day, and then sends another 50 (totaling GHS 100), they will not be charged. However, any amount transferred after that on the same day will be charged with the E-Levy.
When will we start paying the E-Levy?
This will be implemented on 1st May 2022.
Will we pay more charges for Vodafone Cash Transactions?
Sending money to other Vodafone Cash numbers and other networks is still free, however, the E-Levy charges will apply.
Who is collecting the E-Levy?
The Government of Ghana through the Ghana Revenue Authority (GRA) in collaboration with Mobile Money Operators, Payment Service Provider (PSP), Banks and special deposit taking institutions
What transactions will the E-Levy be applied to?
- Money transfers between wallet holders on the same network (e.g., Vodafone to Vodafone)
- Money transfers from one network to a different network (e.g., Vodafone to Network B)
- Money transfers from Bank Account to mobile money account (e.g., Bank A to Vodafone Cash)
- Money transfers from mobile money to bank accounts (e.g., Vodafone Cash to Bank A)
What transactions will be exempt from the E-Levy?
- Daily cumulative transfers up to 100 cedis
- Money transfers between accounts owned by the same person
- Transfers for the payment of taxes and fees on Ghana.gov website
- Specified merchant payments
Is there a threshold for the E-Levy?
There is no threshold for the E-Levy. The rate is 1.5% for all transactions that qualify/fall under the stated groups.
Will I pay E-Levy for withdrawing cash?
No, you will not pay the E-Levy for withdrawing cash
Will Vodafone be absorbing the tax?
No, Vodafone will not be absorbing the tax.
Will salaries be taxed?
This is being reviewed.
Will Vodafone still do free P2P?
P2P on Vodafone is still free, however the E-Levy tax will apply.
What happens when you have to do a reversal, will you pay the tax as well?
Reversals are allowed and the tax will also be reversed. Transactions done within 48 hours can be reversed on the same day. Timelines are yet to be shared for reversal requests received after 48 hours of initiating the transaction.
Is E-Levy charged on transactions to and from Merchant numbers?
Transactions to merchants are exempt for phase 1. Merchants are advised to register with GRA and obtain a tax clerance certification to qualify for an exemption in phase 2.
Do I pay for the E-Levy if I send money from my Vodafone Cash account to my own bank account and vice versa, even though I have linked my Vodafone Cash account with my bank account?
If your bank account is linked to your Vodafone Cash account, you will not pay the E-Levy on transactions to the linked account.
If I make a first P2P transaction of GHS 80 and a second P2P transaction of GHS50, will E-Levy be charged on the total GHS 50 in the second transaction or just on the GHS 30 which is above the daily limit of GHS 100?
The charge should be on the GHS 30 excess of GHS 100.
If I make a one-time transaction of GHS 120, will E-Levy be charged on the total GHS 120 or just for the GHS 20 which is above the daily limit?
The charge should be on the GHS 20 excess of GHS 100.
How is the tax applied on transactions from 3rd party portals? Example, using a third-party platform?
All Payment Service Providers (PSPs) are charging entities and are required to apply the tax similar to how Vodafone will apply the tax.
Is E-Levy going to be charged when I make bill payments like fixed broadband, ECG and GWCL with Vodafone Cash?
If these billers are in good standing with GRA, and have been vetted and approved, you will not be required to pay the E-Levy.
Will I pay E-Levy if I buy airtime or data using Vodafone Cash?
No, the E-Levy does not apply to Airtime or Data purchases.
Can someone else pay for my E-Levy charges?
Another person cannot pay your E-Levy charges as the tax is deducted at the time of the transaction.
Do you have an E-Levy bundle?
We do not have an E-Levy bundle.
Will companies who pay staff via Vodafone Cash after their Payslips have been deducted for income tax already be charged the E-Levy? E.g., will my GHS 200 salary paid onto my Vodafone Cash account be charged if I am to send it to another person?
Yes, you will still pay the E-Levy as long as you are transferring to another individual’s wallet.
Will I be charged if I am to do multiple transactions of less than 100 cedis but sums up to more than GHS 100?
Yes, you will pay the E-Levy on the transactions that exceed the cumulative GHS 100
Are transactions limited to only money transfers or encompasses utility payments also?
Utility payments made via the Ghana.gov site and GRA approved payment channels will not incur the E-Levy
Money transfers between accounts owned by the same person. (Please how can we confirm the exemption, Is it in relation to other network registration details)
The system is currently unable to identify two wallets belonging to the same customer, and so transfers will be charged the levy; however, customers can make a claim for reversal once they can prove ownership of both accounts.
How do I get back my E-Levy money when the transfer is reversed?
Reversal of the E-Levy charge can be done if the reversal is initiated within 48 hours.
Will my wallet balance attract the E-Levy?
No, your wallet balance will not attract the E-Levy.
Will I pay the E-Levy for sending money from another country to a Vodafone Cash account in Ghana?
No, foreign remittances are excluded from the E-Levy.