Botswana Unified Revenue Services ( BURS) has been encouraged to implement taxation on digital products and online services to enhance revenue generation for the country.

As part of preparation for implementation of taxation of digital services and products, Botswana is currently working on identification of remote services suppliers, Simplified Registration requirements, Simplified online VAT Returns, Online Payment, Systems change requirements by BURS and the suppliers, Consultations with all relevant stakeholders.

Business and Industry Advisory Committee ( BIAC) Chairperson, Karl- Heinz Haydl said digital vat regimes have been adopted by over 80 countries and it is important for Botswana to adopt the system as this will bring great benefit to economic growth and enhance digital trade advancement. “This is already an enormous experience that we encourage countries like Botswana to tap into and get great economic benefits.” He highlighted that consultations should continue to ensure successful compliance.

Government of Botswana is currently reviewing the VAT Act to align it with modern forms of legislative drafting. This will include the introduction of taxation of remote services, including taxation of digital products or online services as well as the introduction of reverse charge by registered persons, Government entities and exempt bodies.

In his presentation during the consultative workshop on Friday, Karl- Heinz Haydall stated that implementation of services regime should be implemented first before considering the goods. “When looking at digital VAT/ GST measures - start to implement services regime first before moving to goods.”

He said implementation of digital VAT/ GST measures should target consumption before considering the need for broader tax measures.

Taxation on digital services and online trading is intended to equalize the playing field for domestic and remote service suppliers.