Tax shock as Distance Education students to pay 21.9% more on tuition fees
In a bid to comply with Ghanaian tax regulations, the University of London has announced its registration with the Ghana Revenue Authority for the purpose of collecting Value Added Tax (VAT) and several additional levies. This proactive measure ensures the university’s adherence to the country’s tax laws and facilitates the fulfillment of its tax obligations in Ghana. Specifically, these taxes and levies will be applicable to online services, including the realm of online education, which falls within the purview of the defined taxation scope.
In compliance with Ghanaian tax laws, the following charges will be imposed on Ghanaian students studying for various programmes online at the University of London:
- Value Added Tax (VAT) at a rate of 15%
- National Health Insurance Levy (NHIL) at a rate of 2.5%
- Ghana Educational Trust Fund Levy (GETFL) at a rate of 2.5%
- Covid 19 Health Recovery Levy (CHRL) at a rate of 1%
As a result, an effective rate of 21.90% will be levied on all payments made by new and continuing students who are resident in Ghana, commencing from the 20th of June 2023.
The University of London in a presser noted that it acknowledges this sudden imposition of taxes and levies will represent an unforeseen financial burden for students and therefore endeavors to provide advance notice of changes to programme fees. The university regularly reviews its programme fees in accordance with its terms and conditions, seeking to strike a balance between maintaining affordability and delivering exceptional educational services. However, in this particular instance, the university’s hands are tied, as it is obliged to pass on the statutory charge imposed by the Ghanaian tax authorities.
To ensure transparency and facilitate students’ understanding of the revised fees, the breakdown of the 21.90% charge, clearly delineating the VAT and individual levies, will be meticulously itemized against each fee charged on the students’ respective records. This comprehensive breakdown will enable students to discern the precise components contributing to the overall charge, allowing for a more informed assessment of their financial obligations.
While these tax-related adjustments may necessitate careful reassessment of personal financial arrangements, it is crucial to recognize that the university is implementing these changes to align with Ghanaian tax regulations and fulfill its legal obligations.
The University of London’s recent registration with the Ghana Revenue Authority to collect VAT and other levies exemplifies its commitment to compliance with Ghanaian tax laws. This move enables the university to fulfill its tax obligations while providing students with clarity regarding the financial implications of these tax adjustments. The University says it remains unwavering in its dedication to providing a world-class educational experience and supporting its students as they navigate the evolving landscape of higher education in Ghana.
Find below FAQs on the increment in tuition fees charged Ghanaian students over VAT and other levies:
