Botswana introduce VAT on e-services for non-resident providers

28 February 2024

The Botswanan government confirmed in its 2024 Budget that it will introduce VAT on the sale of digital services by non-resident providers to local consumers. 

Currently, foreign businesses providing digital services to consumers in Botswana do not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over resident providers, the Botswanan government will introduce VAT at 14% on these types of transactions. 

An implementation date has currently not been confirmed however it has been confirmed that non-resident businesses will need to appoint a local resident agent or representative to obtain a VAT account.

Once implemented, this will apply to a range of electronic services including advertising, streaming games, music, apps, films, e-books, e-journals, software, and internet services.