Botswana Unified Revenue Service (BURS): Targets P400 Million in Digital VAT from Remote Services

• BURS has implemented VAT on remote services, targeting P400 million in additional revenue.
• The extension of VAT to remote services aims to tap into growing digital economies.
• Botswana looks to diversify public revenue streams beyond traditional diamond dependence.
• The Value Added Tax (Amendment) Act, 2025, became effective on June 1, 2026, with registration starting then and charging VAT from October 1, 2026.

BURS's move to extend VAT to remote services is in line with regional trends and international best practices.

The Botswana Unified Revenue Service (BURS) has implemented measures to increase public revenue by targeting P400 million in additional Value-Added Tax (VAT) from the remote-services economy. This move comes as Botswana looks to diversify its revenue streams beyond its traditional dependence on diamonds. BURS enlisted regional tax expertise to help extend VAT to remote services, which are growing rapidly across the continent.

The extension of VAT to remote services is a strategic decision aimed at tapping into the vast potential of digital economies. As more businesses shift towards online operations, governments are recognizing the need to adapt their taxation systems to capture this new revenue stream.

BURS's implementation of VAT on remote services is in line with regional trends and international best practices. Many countries on the continent have already implemented similar measures, recognizing the importance of taxing digital transactions to boost public revenue. The extension of VAT to remote services also aligns with Botswana's efforts to modernize its taxation system and keep pace with the rapidly evolving digital economy.

The Value Added Tax (Amendment) Act, 2025, which introduced VAT on remote services supplied by non-resident suppliers, was enacted in October 2025 and became effective on June 1, 2026. Regulations for the framework were adopted on May 29, 2026. Non-resident digital service providers were required to begin registering for VAT from June 1, 2026, and started charging VAT from October 1, 2026. VAT-registered taxable persons began accounting for VAT on remote services under a reverse charge regime by August 1, 2026.

The implementation of VAT on remote services has significant implications for businesses operating in Botswana, particularly those providing digital services. Companies must now adjust their accounting and compliance procedures to capture this new revenue stream. Lawyers should be aware of the potential impact on their clients' tax obligations and advise them accordingly.

The success of BURS's initiative, now in effect, could pave the way for other African countries to follow suit, further solidifying the continent's position as a hub for digital trade.

Lawyers should watch for the implications of BURS extending VAT to remote services, which may require clients to adjust their accounting and compliance procedures to capture this new revenue stream.

Source: Original reporting via BURS Targets P400m Digital VAT