Botswana VAT guidelines
| FACTSHEET | |
|---|---|
| Country code | BW |
| Tax name | Value Added Tax (VAT) |
| Tax Authority | Botswana Unified Revenue Service (BURS) |
Overview
Botswana levies Value Added Tax on the supply of goods and services consumed within the country, and on imports. VAT was introduced with effect from 1 July 2002 and is administered by the Botswana Unified Revenue Service (BURS). [1]
The standard VAT rate is 14%. [2] A Value Added Tax (VAT) Act, 2026 commenced on 1 July 2026; BURS has so far confirmed this in connection with a revised zero-rated foodstuffs list (public notice of 9 July 2026), and this guide will be updated as further official detail on the new Act becomes available. [2]
Two other significant reforms are in effect or rolling out: the VAT (Amendment) Act, 2025 (published in the Government Extraordinary Gazette on 31 October 2025) extended VAT to remote (digital) services supplied by non-residents and introduced a mandatory Electronic Fiscal Device (EFD) regime, and a July 2026 BURS notice brought private medical services into the VAT net from 1 August 2026. [3] [4]
Tax-ID / VAT registration
- Businesses first register for Income Tax with BURS (form BURS 1), which issues a Taxpayer Identification Number (TIN); the Income Tax TIN is then used to apply for a separate VAT registration. [1]
- VAT registration is a distinct application from Income Tax registration, and the Commissioner General issues a VAT registration number on approval. [1] [2]
- Registration and returns are administered through BURS's e-services; the eTax platform is used for electronic filing and payment. [1]
Registration thresholds
- Mandatory registration applies to any person making taxable supplies with a value of more than BWP 1,000,000 per annum. [1]
Source snapshot captured 2026-07-20 — original
- Voluntary registration is available to a person making taxable supplies of more than BWP 500,000 but less than BWP 1,000,000 per annum, subject to the Commissioner General's approval. [1]
- A person making taxable supplies of less than BWP 500,000 per annum is not required to register. [1]
- For non-resident suppliers of remote (digital) services, see the dedicated section below — the Amendment Act's remote-services regime uses its own registration trigger and timeline rather than the general thresholds above. [2]
Rates
| Rate | Applies to |
|---|---|
| 14% (standard) | Most taxable supplies of goods and services [1] |
| 0% (zero-rated) | Exports; and, under the Act, 2026 revised list (from 1 July 2026): sorghum/maize meal, millet grain and meal, wheat grain, maize cobs, sugar, brown bread, specified fresh vegetables (potatoes, tomatoes, onions, cabbage, rape, beetroots, carrots, spinach) and fresh fruits (oranges, apples, bananas), rice, samp, bread flour, and cooking oil, all in their natural state and not mixed with other products. [1] |
| Exempt | Supplies not counted as part of a person's taxable turnover and not subject to VAT (no input VAT recovery). Private medical services were exempt until they became taxable from 1 August 2026 (registration for affected providers due by 31 July 2026). [4] |
NB: any food item not on the revised zero-rated list is taxed at the standard 14% rate. [1]
Source snapshot captured 2026-07-20 — original
VAT on non-resident remote/digital services
The VAT (Amendment) Act, 2025 (published in the Government Extraordinary Gazette on 31 October 2025) widened Botswana's VAT base to include remote services supplied by non-residents, with BURS beginning implementation on 1 June 2026; non-resident suppliers with taxable supplies of at least BWP 500,000 over a 12-month period are required to register. [1] [2]
The Value Added Tax (Remote Services) Regulations, 2026 (Statutory Instrument No. 74 of 2026, made by the Minister of Finance and gazetted in Supplement C of the Botswana Government Extraordinary Gazette on 29 May 2026) set out the operating rules: [3]
- Scope of "remote services": online supply of e-books, music, games, apps, software and software maintenance, gambling services, streaming TV/film/music/podcasts and other digital content; electronic data management (website hosting, online data warehousing, file-sharing, cloud storage); webinars or distance-learning courses; website design or publishing services; inbound tourism products (accommodation, meals, transport, tours, other tourist activities); professional services (legal, accounting, consultancy) provided remotely or performed physically in Botswana; supplies made through an electronic marketplace; and any other remote service.
- Registration application: the supplier's registered name, trade name, address, phone number and electronic contact details, the contact details of the person responsible for Botswana VAT compliance, and the supplier's website, accompanied by a certified copy of the company's incorporation certificate and its home-country tax certificate — both translated into English.
- Effective date of registration: from the beginning of the second tax period immediately following the time the supplier became eligible to register, or such later time as the Commissioner General determines in the notice of registration.
- Returns and remittance: a return must be lodged, and VAT remitted, by the 25th day of the month following the end of the tax period.
- Invoicing and VAT-number disclosure: a remote-services supplier must request the VAT registration number of any registered-person customer, and must issue an electronic tax invoice showing the recipient's name and VAT registration number.
- Record-keeping: invoices and receipts must be kept in English, in a currency permitted under section 72 of the VAT Act, in a form that allows tax liability to be readily ascertained, for 5 years after the end of the relevant tax period. Failure to do so (without reasonable cause) attracts a penalty of 75% of tax payable for a deliberate or reckless failure, or 20% in any other case — or a fixed penalty of BWP 10,000 (company) / BWP 5,000 (other taxpayer) where no tax is payable, if that is higher.
- Representative: a supplier may appoint a representative (by letter lodged with the Commissioner General) to lodge returns and pay VAT on its behalf.
- Inbound tourism carve-out: a supplier of remote services must not charge VAT on an inbound tourism product.
- Transitional rule: a supplier liable to register must do so immediately from the commencement of the VAT (Amendment) Act, 2025, and must start charging VAT four months from its date of registration.
A companion instrument, Statutory Instrument No. 73 of 2026 (Value Added Tax (Government Entities and Large Unregistered Persons) Regulations, 2026), made the same day, sets a parallel registration process so that government entities and large unregistered persons can account for VAT under the reverse charge: they must apply for registration within two months of the Amendment Act's commencement and are issued a VAT registration number by the Commissioner General. [3]
Invoice requirements
Botswana's VAT runs on an invoice basis: output tax is declared and payable on the basis of invoices issued, not payments received, and liability arises when the invoice is issued or payment is received, whichever is earlier. The invoice therefore drives the tax point, not just the paperwork. [5]
Every VAT registered person must issue a tax invoice for every supply made to a VAT registered customer. Without an invoice that complies with the requirements below, the recipient cannot deduct the input tax credit. [5]
Mandatory content
| Required particular | Notes |
|---|---|
| The words "Tax Invoice" | Must be clearly indicated on top |
| Name, address and VAT registration number of the supplier | — |
| Name, address and VAT registration number of the person receiving the supply | The recipient's VAT number is required only if registered |
| Date of issue and the serial number | — |
| Clear description of the goods or services supplied | — |
| Quantity or volume supplied | — |
| The consideration for the supply, the VAT due, and the consideration including the VAT due | All three figures |
BURS accepts a VAT-inclusive total instead, but only where the invoice clearly states that the price shown is inclusive of VAT. Beyond these mandatory details, the style and layout of the invoice are for the registered person to determine. [5]
Source snapshot captured 2026-07-30 — original
The VAT Description guidance above illustrates the VAT-inclusive note with "Vat at 12%". That figure is out of date — Botswana's standard rate is 14%, as confirmed by the BURS zero-rated foodstuffs notice issued under the VAT Act of 2026 and cited in Rates above. Use 14% on invoices; the field list itself is unaffected. [1]
There is no prescribed layout
BURS publishes no specimen invoice, and says plainly that it does not need to. Its VAT guide states, immediately after the list of required particulars: [2]
"The style and the layout of the invoice is to be determined by the registered person but they must include the details specified above."
Nor is a form gazetted: the 2026 VAT regulations contain no invoice form, and Botswana has no fiscal-device specification that would prescribe one. So a Botswana tax invoice is compliant on its content, in any design the vendor chooses.
Note that the BURS guide quoted above is out of date on rates — it still shows VAT at 12%. Rely on it for the layout-freedom rule, not for the rate; the current rate is in Rates above.
What a compliant invoice looks like
Because BURS publishes no specimen, the sheet below is one we built from the particulars listed above, to show where each one lands on a page. It is an illustration of the content rule, not a template you must follow — any design carrying the same particulars is equally compliant.
Tax invoice
| Description | Quantity | Consideration (excl. VAT) |
|---|---|---|
| Borehole pump servicing | 3 units | BWP 18,000.00 |
- Consideration for the supply
- BWP 18,000.00
- VAT at 14%
- BWP 2,520.00
- Consideration including VAT
- BWP 20,520.00
- The words "Tax Invoice" must be clearly indicated on top — which is why they head the sheet.
- All three money figures are shown, because BURS requires the consideration, the VAT due and the VAT-inclusive consideration. A VAT-inclusive total alone is accepted only where the invoice states plainly that the price shown includes VAT.
- The recipient's VAT registration number appears only where the recipient is registered.
Tax debit and credit notes
Tax debit and credit notes must be issued, clearly designated as such, and carry much the same detail as a tax invoice, whenever a supplementary charge is made or a reduction in the amount charged or due is agreed between seller and buyer. [5]
Language, location and retention
Records must be kept in Botswana and in either English or Setswana, and retained for at least 7 years after the period to which they relate. This covers original tax invoices, credit and debit notes received, and copies of all those issued. [5]
E-invoicing status
There is no universal continuous transaction control (CTC) e-invoicing mandate covering all VAT-registered businesses yet. The VAT (Amendment) Act, 2025 introduced a mandatory Electronic Fiscal Device (EFD) regime as part of the same package that extended VAT to remote services. [1]
Separately and more specifically, registered suppliers of remote services must issue an electronic tax invoice disclosing the recipient's name and VAT registration number, under regulation 10 of the Value Added Tax (Remote Services) Regulations, 2026 (Statutory Instrument No. 74 of 2026). [2]
Recent changes
- 2026-07-09 — BURS Public Notice revised the list of zero-rated foodstuffs under the Value Added Tax (VAT) Act, 2026 (which commenced 1 July 2026): sorghum/maize meal, millet grain/meal, wheat grain, maize cobs, sugar, brown bread, specified fresh vegetables and fruit, rice, samp, bread flour and cooking oil are zero-rated; all other foodstuffs remain at the 14% standard rate. (Botswana Unified Revenue Service) — see issue
- 2026-05-29 — The Minister of Finance made the Value Added Tax (Remote Services) Regulations, 2026 (Statutory Instrument No. 74 of 2026) and the companion Value Added Tax (Government Entities and Large Unregistered Persons) Regulations, 2026 (Statutory Instrument No. 73 of 2026), gazetted in Supplement C of the Botswana Government Extraordinary Gazette: registration mechanics, invoicing, penalties, and a rule that non-resident remote-services suppliers begin charging VAT four months after registering. (Botswana Government Extraordinary Gazette / BURS) — see issue
- 2026-08-01 (upcoming) — Private medical services become taxable; affected medical providers meeting the registration threshold must register with BURS by 31 July 2026 and begin charging VAT from this date. (Mmegi, quoting BURS Acting Commissioner Segametsi Radibe-Michael)
- 2026-06-01 — BURS began implementation of VAT on remote (digital) services supplied by non-residents under the VAT (Amendment) Act, 2025; non-resident suppliers with taxable supplies of at least BWP 500,000 over 12 months must register. (Grant Thornton Botswana)
Reference links
- BURS — Value Added Tax (VAT) overview
- BURS — Tax registration (Income Tax TIN and VAT thresholds)
- BURS — Public Notice: Zero-Rated Foodstuffs Under the VAT Act, 2026 (9 July 2026)
- BURS — VAT Description (tax invoice particulars, debit/credit notes, record keeping)
- Value Added Tax (Remote Services) Regulations, 2026 — Statutory Instrument No. 74 of 2026
- Grant Thornton Botswana — Botswana introduces VAT on remote services and mandatory use of EFDs
- KPMG — Botswana: Legislative package of tax and customs reforms
Frequently Asked Questions
What is the standard VAT rate in Botswana, and which foodstuffs are zero-rated?
The standard rate is 14%. A BURS Public Notice of 9 July 2026 revised the zero-rated foodstuffs list under the Value Added Tax (VAT) Act, 2026 (commenced 1 July 2026): sorghum/maize meal, millet grain, millet meal, wheat grain, maize cobs, sugar, brown bread, specified fresh vegetables and fruit, rice, samp, bread flour, and cooking oil, all in their natural state. Any food item not on the list is taxed at 14%. [1]
What are the VAT registration thresholds in Botswana?
Mandatory registration applies once taxable supplies exceed BWP 1,000,000 per annum. Voluntary registration is available between BWP 500,000 and BWP 1,000,000, with the Commissioner General's approval. Below BWP 500,000, registration is not required. Income Tax registration (and TIN) must be completed before a business can apply for VAT registration. [1]
Do foreign providers of remote/digital services have to register for VAT in Botswana?
Yes. The VAT (Amendment) Act, 2025 (Gazette, 31 October 2025) extended VAT to non-resident remote services — digital content, cloud/hosting, webinars, website design, inbound tourism, remote professional services, and electronic-marketplace supplies — with BURS implementation from 1 June 2026. The Value Added Tax (Remote Services) Regulations, 2026 (Statutory Instrument No. 74 of 2026, gazetted 29 May 2026) require a liable supplier to register immediately from the Amendment Act's commencement, providing incorporation and tax certificates translated into English. [1]
When must a registered remote-services supplier start charging Botswana VAT?
Registration itself takes effect from the start of the second tax period after the supplier became eligible. Once registered, the supplier must start charging VAT four months from its date of registration (regulation 13, Statutory Instrument No. 74 of 2026). Returns and VAT remittance are then due by the 25th day of the month following each tax period, and the supplier must request customers' VAT numbers and issue electronic tax invoices. [1]
Is e-invoicing mandatory in Botswana?
Not as a universal mandate for all VAT-registered businesses. The VAT (Amendment) Act, 2025 introduced mandatory Electronic Fiscal Devices (EFDs) alongside the remote-services VAT reform. Registered suppliers of remote services must specifically issue an electronic tax invoice showing the recipient's name and VAT registration number, under the Value Added Tax (Remote Services) Regulations, 2026. [1] [2]