Tax for Tailors in Ghana: The Basics

Most small tailors in Ghana are individuals taxed through the Ghana Revenue Authority (GRA), and the GRA's Modified Taxation Scheme names tailors as an example of who it is designed for. Which category you fall in depends on your yearly sales, and keeping simple records makes every category easier.

This guide explains the basics in plain language for tailors and small workshop owners. Good records start with your clients, orders and invoices, which is what tailor management software is built to keep in one place. This is general information, not legal or tax advice. Confirm your own position with the GRA or a qualified adviser.

What is the Modified Taxation Scheme?

The Modified Taxation Scheme is a simplified way for informal-sector workers to pay tax. The GRA's scheme page lists tailors alongside hairdressers, mechanics and electricians as examples of people who can qualify.

It has three categories, based on how much your business sells in a year. Checked November 2026.

Category	Who it is for	How tax works
Presumptive Tax based on Installment (PTI)	Average yearly sales of GHC 20,000 or less over three years	A fixed amount set by income level and activity
Presumptive Tax based on Turnover (PTT)	Yearly sales above GHC 20,000, up to GHC 500,000	A flat 3% of total yearly sales
Modified Cash Basis (MCB)	Those who do not qualify for the first two, or who choose it	Tax on profit after allowable business expenses

The figures come from the GRA page linked above. The page does not list the fixed PTI amounts, so ask the GRA for the current figure.

Who does not qualify for the simple categories?

The GRA page says formally qualified professionals, such as lawyers, engineers and accountants, do not qualify. Neither do owners of multiple businesses or outlets, or partners in a registered partnership.

If you own several workshops, check with the GRA which category applies. If you employ people, ask about your duties as an employer too.

Do tailors in Ghana need a TIN?

The GRA's online services use a Taxpayer Identification Number (TIN), and the GRA homepage says you need your TIN or GhanaCard PIN to use its portal and app. Start at the GRA's TIN pages to register or confirm yours.

Keep the number on your invoices and tax correspondence. Having it ready saves time when you file or answer a query.

Do tailors need to charge VAT?

Only if your business is above the registration threshold. The GRA VAT page says the threshold for businesses dealing in goods was raised from GHS 200,000 to GHS 750,000 under the Value Added Tax Act, 2025 (Act 1151), effective 1 January 2026. It lists the VAT rate as 15%, with NHIL and GETFund levies of 2.5% each.

The page does not state a threshold for service providers. A tailor sells both fabric and labor, so ask the GRA how your business is classified before you decide.

What about the Tax Stamp?

The GRA describes a Tax Stamp as a stamp issued to small-scale businesses in the informal sector as proof of tax payment. Ask the GRA whether it applies to your workshop and how to get one.

When do you have to file?

The GRA homepage listed 30 April 2026 as the filing deadline for 2025 Personal Income Tax returns, as of our check in November 2026. Deadlines can change, so confirm the current date on the GRA site each year.

How do records help at tax time?

Whatever your category, a clear record of sales and costs helps you answer the GRA and see your real profit. For modified cash basis taxpayers, expenses reduce taxable profit, so receipts matter.

Keep these:

• Invoices for every order, with date, client and amount.
• Receipts for fabric, thread, rent, transport and equipment.
• Payment records showing how and when clients paid.
• A monthly summary of sales and costs.

ZeDaq.ai's tailor tools include a client CRM, orders with a delivery calendar, and invoicing in multiple currencies, including NGN, GBP and USD. That helps if you have clients abroad. Tailors in other countries may find the guide on tax for tailors in Nigeria or tax for tailors in the UK useful for comparison.

Which tools help you stay organized?

A spreadsheet works at first, but it gets harder as orders grow. The guide to the best software for tailors compares what to look for.

FAQs

Do tailors in Ghana pay income tax?

Yes, business income is generally taxable. The Modified Taxation Scheme gives tailors a simplified way to pay, based on yearly sales.

What is the tax rate under the turnover category?

The GRA scheme page lists a flat 3% of total yearly sales for businesses with sales above GHC 20,000 and up to GHC 500,000.

Do I need to register for VAT?

Only if you pass the VAT threshold set by the GRA. Check the GRA VAT page, because the threshold for services is not stated there.

Should I hire an accountant?

If your business is growing, has employees or is near a threshold, an accountant can help. For very small workshops, clear records may be enough to start.