The Value Added Tax Act of Botswana was passed by Parliament in December 2000 and gazetted on 1st February 2001. As per the VAT law there are two rates of tax viz., Zero Percent and a standard rate of 12 percent. The VAT is levied on imported goods except those mentioned in Third Schedule and on taxable supplies.
An enterprise having taxable supplies of P 500,000 and above per annum needs to register for VAT. A VAT registered person has to issue tax invoice for taxable supplies made to another VAT Registered person. A Registered person is eligible to claim credit of VAT paid on goods purchased locally or imported into Botswana and offset against output tax. The excess of output tax after offsetting against input credit has to be paid to Director of VAT.
Every VAT Registered person must file return in VAT 002.1 form. The last date for paying VAT dues fall on 25th of the subsequent month. For enterprise with taxable turnover of:
Less than P12 million per annum, the VAT return has to be filed once in two months
P12 Million or above, the VAT return has to be filed every month.
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