The key amendments focused on implementing a reverse-charge mechanism, setting rules for remote services, registration, tax periods, electronic fiscal devices, foreign currency reporting, and VAT representatives.
Botswana’s Minister of Finance, Ndaba Gaolathe, has presented the Value Added Tax (Amendment) Bill, No. 22 of 2025 (published on 8 August 2025) in the parliament on 14 August 2025, which aims to broaden the VAT scope by including digital services offered by nonresident providers and to modernise the VAT framework through digital advancements.
Key aspects of the bill include revising the definitions for terms such as remote services, electronic fiscal devices, and electronic marketplaces. It also outlines the implementation of a reverse-charge mechanism, establishes rules for taxing remote services, and specifies registration requirements and tax periods. Non-resident suppliers providing remote services are required to register for VAT once their annual supplies surpass BWP 500,000.
Additionally, the bill addresses the use of electronic fiscal devices, foreign currency reporting, and the role of VAT representatives.
In Botswana, the use of fiscal devices for issuing receipts is mandatory, with penalties including a fine of P10,000 per month for non-compliance and up to BWP 100,000 or a term of two years’ imprisonment for tampering or fraud. Remote service suppliers can report and pay VAT in approved foreign currencies such as USD, EUR, or GBP. Non-resident suppliers may also be required to appoint a VAT representative, who bears personal liability for the supplier’s VAT obligations.
The effective date for these changes has not been announced at the time of writing.
