1. VAT on Digital Services & Reverse Charge
- Non-resident suppliers of digital services to Botswana residents must register for VAT if annual sales exceed P500,000.
- A reverse charge mechanism applies when services are supplied to registered persons, large unregistered entities (turnover ≥ P1 million), or government bodies.
2. Mandatory Electronic Fiscal Devices
- All registered traders must use electronic fiscal devices to issue fiscal receipts.
- Penalties for non-compliance include fines of P10,000/month and up to P100,000 or 2 years imprisonment for tampering or fraud.
3. New Definitions & Compliance Rules
- Introduces terms like “remote services,” “electronic marketplace,” and “fiscal receipt.”
- Electronic marketplaces may be deemed suppliers for VAT purposes unless the underlying supplier is VAT-registered.
- VAT reporting may be done in approved foreign currencies (USD, EUR, GBP), and non-resident suppliers may need to appoint a VAT representative in Botswana.
Source:
See also
- Botswana Proposes VAT on Digital Services by Nonresident Providers with New Tax Amendments – VATupdate
- Botswana Implements VAT on Remote Services from September 2025 to Boost Digital Economy Revenue – VATupdate
- 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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