The rate
The standard rate in Botswana is 14%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Register for VAT once taxable supplies pass P1 million in any 12-month or shorter period, or as soon as you expect to pass it in the coming 12 months. Apply within 21 days of becoming liable; registration takes effect from the start of the second tax period after that. Voluntary registration is open between P500,000 and P1 million, and below P500,000 only if you are in manufacturing, in construction, or hold a mining or petroleum licence. There is no simplified or flat-rate scheme for small businesses. A non-resident supplying remote services into Botswana registers at P500,000 and files quarterly.
How to register
A person must apply for compulsory registration at the end of any 12-month or shorter period in which taxable supplies exceeded the threshold, or at the start of a 12-month period in which they are reasonably expected to exceed it. The application is on the approved form and must reach BURS within 21 days. BURS may count supplies made by an associate, and may register a person on its own motion if the person fails to apply (VAT Act, 2026, sections 12 and 15(2)).
For voluntary registration BURS must be satisfied that you make or will make taxable supplies, that you meet the annual-value condition or are in manufacturing, construction, mining or petroleum, that you work from a fixed place or through a website or social media account, and that you will keep proper records and file regular, reliable returns. BURS serves its written decision within 21 days of the application (section 15(3)-(4)).
Once registered, display the original certificate at your main place of business and a certified copy at each other place, and show your VAT details on any website or social media account you trade through (section 16). Report changes of name, address, constitution or principal activity within 21 days (section 15(7)). To leave, notify BURS within 21 days of ceasing taxable supplies (section 18), or apply to cancel when supplies fall below the threshold, which BURS may allow after two years. Cancellation requires a final return and payment within 14 days (sections 19 and 20).
Filing and paying
Registered and filed with Botswana Unified Revenue Service (BURS).
Tax periods are two months long, and BURS puts you in Category A or Category B. Category A periods end on the last day of January, March, May, July, September and November. Category B periods end on the last day of February, April, June, August, October and December. Category C is monthly and is compulsory once taxable supplies pass P12 million a year. File the return and pay within 28 days after the end of the period — the old 25-day rule is gone. So a Category A August/September return is due 28 October, a Category B September/October return is due 28 November, and a Category C August return is due 28 September. Returns go through BURS e-Services at eservices.burs.org.bw, or in person at a BURS office, which stamps the date of receipt.
Penalties for getting it wrong
A late VAT return costs the greater of P50 for each day it is outstanding, capped at P5,000, or 10% of the unpaid tax for each month or part month. Late payment costs the greater of P50 a day or 10% of the tax per month, capped at the tax itself, plus late payment interest of 1.5% per month on the unpaid amount. One transitional relief: no late payment penalty is charged for the first 12 months of the Tax Administration Act, so until 1 July 2027. Interest and late filing penalties still run during that window.