The Botswana Unified Revenue Services (BURS) has ushered in a new era of tax administration following the implementation of comprehensive reforms to the country’s tax framework. The major changes affect businesses, taxpayers and importers.
The reforms, which came into effect on July 1, 2026, include the re-enactment of the Income Tax Act and the Value Added Tax (VAT) Act, amendments to the Customs Act, and the introduction of a new Tax Administration Act designed to harmonise procedures governing tax collection and compliance.
In a public notice issued this week, BURS said the changes are intended to streamline tax administration while improving efficiency and certainty for taxpayers.
Under the new Income Tax Act, corporate tax remains unchanged at 22 percent, but taxpayers will face stricter compliance requirements, including mandatory electronic filing of returns and penalties for late submissions.
Among the most notable changes is the increase in the VAT registration threshold from previous levels to P1 million in annual turnover, a move expected to reduce compliance costs for smaller businesses and exempt many micro-enterprises from mandatory VAT registration.
The tax authority has also extended the VAT return submission period to 25 days and increased the period for claiming input tax credits to six months. In addition, VAT refunds will now be processed within three months, providing relief to businesses that have long complained about delays in receiving refunds.
The reforms also bring Botswana’s tax system closer to international practice through the introduction of VAT on digital services and the implementation of transfer pricing rules aimed at ensuring multinational companies pay taxes on profits generated within the country.
The newly introduced Tax Administration Act establishes common rules for filing deadlines, record-keeping, penalties, taxpayer rights and dispute resolution procedures, including objections and appeals.
Under the new Income Tax Act, corporate tax remains unchanged at 22 percent, but taxpayers will face stricter compliance requirements, including mandatory electronic filing of returns and penalties for late submissions.
BURS has further clarified tax treatment relating to imported services, the sale of commercial property and the transfer of businesses as going concerns. Residential property sales will remain exempt from VAT.
The newly introduced Tax Administration Act establishes common rules for filing deadlines, record-keeping, penalties, taxpayer rights and dispute resolution procedures, including objections and appeals.
Meanwhile, amendments to the Customs Act update customs valuation rules, clarify import and export procedures and introduce revised penalties for customs-related offences.
BURS also announced that deputy sheriffs whose annual turnover exceeds P1 million will now be required to register for VAT.
The revenue authority said comprehensive guidance on the reforms will be issued to help taxpayers understand and comply with the new requirements.
