Botswana VAT Portal for Non-Resident Digital Service Providers

Botswana’s VAT regime for non-resident remote service providers became fully effective from October 1, 2026. Registered (or those that should register) foreign providers of remote services should start collecting VAT on their B2C supplies from that date. 

The implementation of the VAT on Remote Services regime took some time, as is generally the case when a reform of this scope is carried out, but now everything is technically operational, and non-resident digital service providers should register, collect, and report VAT due. 

The Botswana Unified Revenue Service(BURS) launched a VAT online portal for Remote Providers of digital services. This VAT portal permits non-resident digital service providers to follow the simplified registration route. After successful registration, the VAT reporting should be processed exclusively through the online portal. 

Botswana VAT on Remote Services 

Registration

The non-resident providers of remote services should register for VAT on Remote Services if any of the following conditions are met: 

• If, at the end of any period of 12 months or less, the total value of taxable supplies made exceeds the registration threshold of BWP 500,000, or 
• At the beginning of any period of 12 months, if the expected total revenue of taxable supplies during that period will exceed the registration threshold. 

Given the relatively low registration threshold (around USD 36,000), many remote service providers will fall within it. 

VAT on Remote Services Reporting 

The VAT Act and complementary statutory instruments that additionally regulate VAT on Remote Services stipulate that the non-resident digital service providers are accountable for VAT collection on B2C transactions. For B2B transactions, the reverse charge mechanism applies. 

An important notice for B2B transactions is that the non-resident digital service provider is mandated to collect verifiable business data from the locally registered business to be able to use the reverse charge mechanism. A locally registered business should inform, in a traceable manner, the foreign supplier of its VAT status before the transaction, so the mandatory VAT details can be part of the tax invoice. 

Foreign remote service providers are mandated to issue a tax invoice for B2B transactions. 

Filing and Remittance 

Under the latest regulatory novelties, introduced through the amendments to the VAT Act, that came into effect on July 1, 2026, the non-resident digital service providers are mandated to submit a VAT return on Remote Services by the 28th day of the following month that follows the tax period. 

The tax period for remote service providers is the calendar month. 

The remittance period is aligned with the deadline for the submission of the return. 

Late filing and late payments could result in a tax offense, and that could trigger VAT penalties and interest. 

How to Stay Compliant

The Botswana VAT regime for non-resident providers of digital services has been significantly reshaped with the latest amendment to the VAT Act. Starting from June, 1, 2026, non-resident digital service providers should register for VAT through the simplified VAT portal and duly fulfill their VAT-related obligations. 

The advisory role offered by 1stopVAT when it comes to foreign Remote Service providers starts with understanding the threshold exposure for registration, accountability for VAT, assistance with return preparation, and remittance of the owed tax.

Under statutory rules, we can assist you directly with VAT registration and VAT compliance requirements in Botswana.