Botswana Expanding VAT Tax Base to Include Digital (Remote) Services

• Introduction of New VAT Rules: The Botswana Parliament is reviewing the Value Added Tax (Amendment) Bill of 2025, which aims to expand the VAT base by introducing new taxation rules for digital (remote) services, particularly targeting non-resident providers.
• Reverse Charge Mechanism: The bill includes new reverse charge requirements for B2C supplies from non-resident service providers, applicable to VAT-registered individuals and businesses in Botswana, as well as government entities and large non-registered persons with an annual turnover exceeding BWP 1 million.
• Registration and Compliance Obligations: Non-resident digital service providers must register for VAT if their annual supplies exceed BWP 500,000, submit quarterly returns, and electronic marketplaces may also incur VAT liabilities when facilitating these services, except when the underlying supplier is VAT-registered.

Source Orbitax

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Botswana Proposes VAT Law Amendments to Expand Tax Base and Modernize System

• Botswana proposed amendments to VAT law to expand the tax base and modernize the system
• The bill introduces VAT on digital services by nonresidents
• Key proposals include expanding definitions for remote services and electronic marketplaces
• Introduces a reverse-charge mechanism and rules for remote services
• Updates registration requirements and tax periods
• Involves electronic fiscal devices and foreign currency reporting
• Proposes VAT representatives
• Effective date is not yet announced

Source: kpmg.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.

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