- Botswana plans to introduce VAT on foreign digital services in 2025.
- The Minister of Finance announced plans to simplify and modernize the VAT system.
- The proposal includes enacting a new Tax Administration Act to harmonize VAT and Income Tax Act rules.
- Foreign digital service providers will have to apply 14% VAT on transactions relating to digital services.
- Foreign digital businesses will have to appoint a local tax representative to fulfill their VAT requirements.
- Taxable persons who provide services such as online advertising, streaming games, music, apps, and films or supply e-books, e-journals, software, and internet services should monitor for updates on the implementation timeline, VAT registration threshold, filing, and payment requirements.
- Foreign digital businesses should identify reliable local tax representatives for VAT purposes.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
