BURS looks to tax global digital services providers
Pauline Dikuelo | Tuesday June 2, 2026 10:11
The tax agency is, therefore, seeking to collect approximately P450 million a year in revenue through the taxation. It follows the announcement that the Remote Service VAT Act will officially come into effect on June 1, 2026, introducing a 14% Value Added Tax (VAT) on digital and remote services provided by non-resident companies to customers in Botswana.
The move comes at a time when government is under increasing pressure to improve the efficiency of tax collection as the prolonged slump in diamond sales continues to negatively affect national budget revenues.
Under the new framework, foreign companies supplying digital services to Botswana consumers will be required to register for VAT and remit the tax to the government.
Popular global platforms and service providers such as Netflix, Alibaba, as well as applicable products and services offered by Google, Apple, and Meta, will now attract VAT charges payable by local consumers.
BURS Acting Commissioner for Domestic Taxes, Segametse Radibe-Michael, said the tax authority will work closely with international tax networks to ensure compliance.
She explained that non-resident companies will be granted a four-month transition period from June to October 2026 to familiarise themselves with the new tax requirements and registration processes. The affected companies are expected to begin charging VAT from October, while the first VAT returns from non-resident suppliers are expected in January 2027.
For resident businesses, BURS has provided a shorter lead time of two months, citing that the tax authority already possesses their operational information and records.
The new VAT regime will also affect consumers seeking professional remote services such as legal, accounting, consultancy, and data-related services sourced outside Botswana.
All these services will now attract VAT under the law, officials of the tax body said.
However, BURS indicated that some sectors, particularly within the tourism and gig-sharing industries, will initially be exempted from the implementation of the tax as further consultations and policy clarifications continue.
Officials noted that digital tourism booking platforms and transportation services such as InDrive will not immediately fall under the VAT framework because there is still “a lot to unpack” regarding how the law should apply to those industries.
“Next phase is to clarify application to tourism and gig-sharing services,” Radibe-Michael said recently when speaking to the media.
To strengthen enforcement and improve revenue collection, BURS intends to use Internet Protocol (IP) addresses and banking details to identify Botswana-based consumers accessing digital and remote services from foreign providers.
The move will also align Botswana with a growing number of countries implementing digital tax measures aimed at capturing revenue from the rapidly expanding global digital economy and ensuring fair taxation between local and foreign service providers.