Regulatory updates - Botswana

The Botswanan government has announced the implementation of electronic invoicing after concluding a three-year pilot program in March 2025 (2025/2026 budget draft). The announcement was made during the 2025/2026 Budget Speech delivered to the National Assembly in February 2025, where the Minister of Finance presented the Electronic VAT Invoicing Solution as part of the country's tax modernization efforts.

The new system will function as a real-time reporting scheme for VAT transactions, requiring all VAT-registered taxpayers to issue e-invoices through a centralized system. This Continuous Transaction Control (CTC) model will ensure the Botswana Unified Revenue Service (BURS) receives information on every sale in real time, enhancing tax compliance by reducing unreported sales.

Additional information about this project, including its technical aspects, is expected to be released in the upcoming months as many important details remain undisclosed.

On February 10, 2025, the Minister of Finance and Economic Development presented the 2025/2026 Budget Speech to the National Assembly. Below are some of the key points.

The strategic tax law review is progressing and intends to introduce three tax bills:

• The new Tax Administration Act;
• Revised Income Tax Act;
• Revised VAT Act.

The following plans have been introduced to strengthen efficiency and compliance:

• Enhance the Botswana Unified Revenue Service (BURS) by investing in solutions powered by technology;
• Implement advance rulings on importations to provide clarity to taxpayers;
• Increase the inspection of imported goods at entry points.

BURS is focusing on advancing tax compliance:

• Introduction of VAT on digital transactions, anticipated to be completed by September 2025;

• Implementation of an electronic VAT invoicing solution enabling real-time tracking of VAT transactions, which will help taxpayers report accurately and enhance compliance. This solution is planned to be completed by March 2026;
• Implementation of a track-and-trace solution to monitor goods and reduce illicit trade.

On 5 February 2024, the Ministry of Finance and Economic Development presented the 2024 Budget Speech to the National Assembly. The budget includes significant tax measures aimed at modernizing and enhancing the efficiency of the country's tax system.

Below are the key proposals.

• Strategic tax law review and modernization

Examination of fiscal legislation for consolidation, simplification, and modernization to align with the dynamic global business landscape.

• Electronic invoicing for efficient VAT collection

Implementation of e-invoicing to enhance VAT collection efficiency. The first phase of a three-year pilot project is targeted for completion in December 2024.

• Incorporating digital sales into taxation

Introduction of reforms to include digital sales by remote service suppliers within the taxation framework, ensuring a comprehensive and contemporary approach to revenue collection.

• Optimizing e-services for enhanced accessibility

Optimization of e-services, including improvements in online tax filing systems, online customs declarations, and electronic payment methods, contributing to a streamlined and accessible digital experience for taxpayers.

• Digital tracking of excisable goods

Implementation of a digital solution to mark and track excisable goods (track and trace), with full implementation targeted for July 2024, aiming to bring transparency and efficiency to the monitoring of excisable goods.