Mmegi

New digital tax due by April

Charges due: The new tax will be spotted through IP addresses and bank card use
Charges due: The new tax will be spotted through IP addresses and bank card use

A new law placing Value Added Tax on local consumers of digital services such as Netflix and Amazon, as well as remote services such as external attorneys, is expected to kick in by April next year, Finance ministry officials have revealed.

Amendments to the Value Added Tax Act passed by Parliament in August are awaiting assent by President Duma Boko. The Botswana Unified Revenue Service (BURS) is meanwhile working around the clock to prepare for the changes, with deputy secretary of financial policy, Boikanyo Mathipa, saying the law would likely kick in “around March or April 2026”.

“The service providers will have to firstly register with BURS as registered persons, and they will also have to modify their systems so that when they provide a service to consumers in Botswana, they charge VAT,” she told the media on Tuesday. “BURS also has to be prepared to register these service providers and to receive VAT from them. So we are thinking that maybe we can look at the Act commencing by March or April 2026.”

Editor's Comment
The Boko-led administration has to tread carefully

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