5 August 2026
Botswana is strengthening its domestic revenue mobilisation efforts through a major reform that will enable the country to effectively tax the digital economy, with the Botswana Unified Revenue Service (BURS) expecting to generate more than BWP 400 million (USD 29 million) in additional Value Added Tax (VAT) revenue from remote services.
The reform introduces VAT on remote services supplied by non-resident businesses, ensuring that digital transactions are taxed fairly and helping Botswana modernise its tax system in line with the rapidly evolving digital economy. The initiative also supports the country’s broader objective of diversifying government revenue sources beyond its traditional reliance on diamond revenues.
The reform was developed through a collaborative technical assistance programme facilitated by the African Tax Administration Forum (ATAF). Combining peer learning with practical implementation support, the programme enabled Botswana to draw on the experiences of other African tax administrations. This included a benchmarking mission to the Kenya Revenue Authority, followed by in-country technical assistance from experts from Uganda and South Africa, which supported the development of Botswana’s remote services regulations and implementation framework.
Speaking on the reform, Itumeleng Kgosietsile, Acting Director: Domestic Taxes at BURS and Chairperson of ATAF’s Indirect Taxes Technical Committee, highlighted the value of collaboration among African tax administrations.
“ATAF assisted us through the implementation of remote services. Botswana has been working on the review of the Value Added Tax to modernise it.
Within the VAT Act, we introduced remote services, allowing Botswana to register remote service suppliers doing business in the country. ATAF facilitated benchmarking with the Kenya Revenue Authority and coordinated in-country technical assistance from Uganda and South Africa.”
She added that the reform is expected to make a significant contribution to Botswana’s revenue mobilisation efforts.
“With this introduction of remote services we are hoping to raise revenue. Botswana has been more reliant on diamonds and we are now pursuing another form of revenue raising through taxes.
We hope to generate over 400 million Pula in VAT revenue through the assistance of ATAF.”
The initiative demonstrates how African countries are increasingly working together to address the tax challenges arising from digitalisation. By combining regional expertise with practical technical assistance, Botswana has developed a framework that strengthens VAT administration, broadens the tax base and positions the country to capture revenue from a growing digital marketplace.
Source: https://shorturl.at/6fZSZ
