Botswana expands digital tax net
Pauline Dikuelo | Monday July 13, 2026 06:00
The reforms, supported by the African Tax Administration Forum (ATAF), have positioned Botswana amongst African countries that are reaping the benefits of digital taxes on remote services.
According to the ATAF’s 2025 annual report released this week, digital taxation is an emerging source of revenue growth, with Value Added Tax (VAT) collections from cross-border digital transactions becoming the largest contributor to ATAF-supported tax collections in 2025.
According to ATAF’s 2025 annual report, VAT compliance on cross-border digital services generated $514.6 million in revenue during the year, accounting for a significant share of the $685.8 million collected through ATAF-supported tax interventions across participating countries.
Botswana was amongst seven African countries that received targeted technical assistance from ATAF to strengthen the taxation of digital services supplied by foreign businesses. The support assisted the country in amending its VAT legislation to ensure that remotely supplied services are effectively taxed and that digital transactions contribute to domestic revenue mobilisation.
The actual revenues from the new tax are expected to flow to the BURS from January.
Commenting on the report, Revenue Manager for Rulings and Directives at the Botswana Unified Revenue Service (BURS), Itumeleng Kgosietsile, said ATAF’s technical assistance helped Botswana translate international tax guidelines into practical reforms suited to the country’s tax environment.
She said the support, which included the use of ATAF’s VAT Toolkit, capacity-building initiatives and knowledge-sharing engagements, strengthened Botswana’s legal framework for digital taxation.
Kgosietsile added that benchmarking engagements with Rwanda and Tanzania played an important role in shaping Botswana’s digital tax reforms and preparations for the introduction of an electronic invoicing system in 2026.
“The benchmarking opportunities facilitated by ATAF were especially valuable. They informed our decision to update Botswana’s legal framework to support the introduction of an Electronic Invoicing System, with implementation scheduled for 2026,” she said.
Recently, BURS announced 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 tax agency is, therefore, seeking to collect approximately P450 million a year in revenue through the taxation.
Beyond digital VAT reforms, ATAF-supported interventions generated $907.8 million in additional tax assessments across participating countries in 2025. The amount included $385.5 million from transfer pricing adjustments, $514.6 million from VAT compliance on cross-border digital transactions, $3.9 million from digital services tax and significant economic presence measures, as well as $3.8 million from other interventions.
ATAF said the results highlight the growing importance of modern tax systems as African economies continue to experience rapid growth in online services and cross-border trade.