Botswana Implements VAT on Digital Services

Botswana is officially joining the growing list of jurisdictions taxing the digital economy. Under the Value Added Tax (Amendment) Act, 2025, non-resident suppliers of remote and digital services will be required to register for and collect Botswana VAT on B2C supplies made to local customers. Registration for non-resident suppliers of remote services began on June 1, 2026, and the charging of VAT by those non-resident suppliers will begin on October 1, 2026, with a 14% VAT rate applying to qualifying services such as software, cloud computing, streaming, and other electronically supplied services. B2B transactions will generally be subject to a reverse-charge mechanism. Businesses providing digital services into Botswana should review their registration and compliance obligations ahead of the implementation date. Please find the announcement from the Botswana Unified Revenue Service here and the corresponding Amendment here.