Botswana Updates VAT Rules for Digital Services

VAT Scope Expansion: Botswana’s VAT amendments target digital services, defining remote services, electronic marketplaces, and fiscal devices, aiming to tax foreign providers supplying goods and services to local consumers.

Reverse Charge and Registration: The reverse charge mechanism shifts VAT liability to recipients who are registered, large unregistered persons, or government entities; non-resident suppliers must register if annual supplies exceed P500,000.

Implementation and Monitoring: Effective date remains undefined, but businesses supplying digital services to Botswana consumers should monitor developments, prepare operations, and consider compliance with reporting, payment, and currency provisions under the amended VAT rules.