3 March 2025
The Botswanan government has confirmed that it will introduce VAT on digital services provided by non-resident providers to local consumers from 1 September 2025.
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.
Non-resident businesses must appoint a local agent or representative to obtain a VAT registration and this new tax will apply to various digital services, including:
- Advertising
- Streaming services
- Music
- Apps
- Films
- e-books
- e-journals
- Software
- Internet services.
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