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VAT changes for private medical practitioners, deputy sheriffs coming

Segametsi Radibe Michael. PIC PHATSIMO KAPENG
Segametsi Radibe Michael. PIC PHATSIMO KAPENG

The Botswana Unified Revenue Service has reinstated mandatory Value Added Tax (VAT) registration on a number of service providers following a review, in sweeping reforms whose implementation will commence by August.

Last week, officials announced that private medical practitioners and deputy sheriffs will need to start registering for this form of taxation as government moves to modernise tax administration and boost domestic revenue collection. BURS Acting Commissioner Domestic Tax, Segametsi Radibe-Michael, said the exemption had unintentionally placed an additional financial burden on private medical practitioners. Under the exemption introduced in 2023, private healthcare providers were not required to charge VAT on their services.

They were also unable to register for or recover VAT paid on business inputs, increasing the cost of running their practices. According to Radibe-Michael, government had to determine whether to maintain the exemption or reinstate value added tax to ensure private healthcare businesses could recover input VAT and remain financially sustainable. "The registration of private medical service providers is already underway,” she said during a presentation on Botswana's tax reforms. “Existing VAT-registered providers have been given the month of July to adjust their billing systems before they begin charging VAT on private medical services from 1 August 2026." Meanwhile, the Acting Commissioner Domestic Tax announced that deputy sheriffs will be brought onto the VAT register for the first time.

Editor's Comment
Commitment by DPP to fight corruption welcome

Whilst many citizens put trust in their leaders that they are tackling one of the worst curses that can befall a country, the public has lost trust after all the cases seemed not to go anywhere.As the saying goes, ‘corruption is a cancer that eats away at the fabric of society’; corruption affects effective governance.Corruption affects delivery of services to the public and also crumbles most systems meant to assist citizens who are very...

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