What is the Electronic Transfer Levy Act?
The Electronic Transfer Levy Act (e-levy) is a tax imposed by the Ghanaian Government on electronic transactions. This applies to all transactions apart from those exempted by law.(1)
Payments made to businesses using Paystack merchants ("specified merchant payments") will not be charged the E-levy, as long as the business or individual is registered with the Ghana Revenue Authority (GRA) and is in good standing with all the applicable tax requirements.
Who charges e-levy?
The entities responsible for charging the levy on behalf of the Ghana Revenue Authority are;
- Mobile Money providers like MTN Momo, Vodafone Cash, AirtelTigo Money, etc.
- Payment Service Providers (PSPs) like Paystack.
- Banks and
- Other Financial Institutions prescribed by Regulations.
Who will pay the e-levy, and how much is the fee?
Anyone who uses electronic means (mobile money, bank account or card) to make a payment to a business/individual not registered with the GRA will be charged the levy.
As a user paying a business via Paystack, you'll be notified of this possibility as you navigate the Paystack checkout.
The final amount charged to your account might differ from the amount on the Paystack checkout. This is because the e-levy is added at the point when you confirm the transaction.
That being said, the e-levy is 1% of the transaction amount. If you're paying GHS 6 to a Paystack merchant, there'll be an added GHS 0.06 on the GHS 6. You'll be charged GHS 6.06 at the end of the transaction.
Is there a threshold for the e-levy?
No, there is no threshold. There's a flat 1% rate on all transactions eligible to pay the e-levy.
In case of a reversal, is e-levy reversed?
Yes, please reach out to us via our Contact Form to request a reversal for the levy deducted from your account if a reversal occurs.
You can read up on the e-levy on the official website of the Ghana Revenue Authority here.