Botswana Value Added Tax Guide 2026

Overview — VAT in Botswana

VAT is a consumption tax levied on the supply of goods and services in Botswana. It is administered by the Botswana Unified Revenue Service (BURS). The tax is borne by the final consumer, with businesses acting as collection agents. VAT-registered businesses can reclaim input VAT on business purchases. The currency is Botswana Pula (BWP).

VAT Rates

• Standard rate: 14% — applies to most goods and services
• Zero rate (0%): Exports of goods and services, international transport, basic food items (maize meal, bread, milk, cooking oil), agricultural inputs, and prescribed medicines
• Exempt supplies: Financial services (banking, insurance), residential rent, education, healthcare, passenger transport, and certain supplies by charitable organisations

Zero-rated supplies allow input VAT recovery; exempt supplies do not.

Registration Threshold

Any business making taxable supplies in excess of BWP 500,000 per annum must register for VAT. Businesses with turnover below this threshold may voluntarily register. Non-resident businesses supplying goods or services in Botswana may also be required to register. Registration is made via the BURS online portal. Penalties apply for failure to register when required.

Quarterly Returns and Payment

VAT returns are filed quarterly, within 25 days after the end of each quarter. The standard quarters end on 30 June, 30 September, 31 December, and 31 March. Returns must be filed electronically through the BURS e-services portal. Late filing attracts a penalty of 10% of the tax due plus interest at 1.5% per month. Any excess input VAT can be carried forward or refunded.

Input VAT and Output VAT

Registered businesses charge output VAT on their taxable supplies and can deduct input VAT incurred on business purchases. Input VAT is reclaimable only if supported by a valid tax invoice. Input VAT on exempt supplies is not recoverable. The following items are blocked from input VAT recovery: motor vehicles (except for resale or specific business use), entertainment (except staff), and club subscriptions.

Import VAT

VAT is charged on the importation of goods into Botswana at 14% of the customs value plus duty. Import VAT is paid at the port of entry and can be claimed as input VAT by registered importers. Deferred payment arrangements may be available for approved businesses.

FAQs

Is VAT registration mandatory for all businesses?

Only businesses with annual taxable turnover exceeding BWP 500,000 must register. Smaller businesses may register voluntarily, which allows them to reclaim input VAT.

Can I reclaim VAT on imports?

Yes, VAT paid on importation can be claimed as input VAT in your quarterly return, provided you hold the relevant customs documentation and the imports are for business purposes.

What records must I keep?

VAT-registered businesses must retain tax invoices, credit notes, import documents, and accounting records for at least five years. BURS may request these records during an audit.

Disclaimer

This guide provides general information about Botswana VAT for 2026. Tax laws and rates may change. Always consult a qualified tax professional or BURS for advice specific to your business. InvestmentKit does not provide tax advice.