Botswana: e-invoicing will be fully implemented by March 2026 for accurate VAT reporting and tracking

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Get ready for a significant shift in the way we handle invoices. By March 2026, e-invoicing will be in full swing, streamlining the process for accurate VAT reporting and tracking.

In the Budget Speech for 2025/2026 delivered to the National Assembly, the Minister of Finance and Economic Development reiterated the commitment to introducing an electronic invoicing system as a vital measure to improve tax compliance and operational efficiency. This initiative is set to be finalized by March 2026, facilitating real-time monitoring of VAT transactions and enhancing the precision of reporting.

Key Dates and Objectives for e-Invoicing Implementation

Pilot Phase (2024) – Conduct initial tests of the e-invoicing system to identify and address any potential issues.
VAT on Digital Transactions (September 2025) – Launching a VAT framework specifically for digital transactions to guarantee taxation on cross-border e-commerce activities.
Full e-Invoicing Implementation (March 2026) – Complete integration of the system for businesses to enable accurate VAT reporting and tracking

The implementation of e-Invoicing extends beyond merely enhancing VAT collection; it represents a broader effort to incorporate advanced technology into Botswana's tax framework. Notable digital initiatives include:

1. Real-Time VAT Monitoring
A significant advantage of e-invoicing is the capability for real-time VAT monitoring, which minimizes errors and mitigates the risk of fraud. By digitally recording each transaction, businesses can benefit from expedited tax return processing and enhanced transparency in tax compliance.

2. VAT on Digital Transactions
Beginning in September 2025, Botswana will introduce VAT on digital transactions, mandating that online businesses, including international e-commerce platforms, contribute their appropriate share of taxes. This initiative aligns with global digital taxation trends and aims to curb tax revenue losses in the expanding online economy.

3. Track-and-Trace Technologies
Botswana also invests in track-and-trace technologies to oversee goods throughout the supply chain. This effort will aid in the fight against illicit trade and enhance the transparency of goods movement, ensuring that businesses adhere to their VAT responsibilities.

The review of the strategic tax legislation is advancing and aims to present three new tax bills:

  • The proposed Tax Administration Act;
  • The updated Income Tax Act;
  • The revised VAT Act.

To improve efficiency and compliance, the following initiatives have been proposed:

  • Strengthening the Botswana Unified Revenue Service (BURS) through investments in technology-driven solutions;
  • Introducing advance rulings on imports to offer greater clarity for taxpayers;
  • Enhancing the inspection process for imported goods at entry points.

KGT is a SAP partner for PE services and SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409

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KGT SAP add-ons for SAF-T, e-invoicing and MTD UK for VAT work as a standalone application within the SAP system and do not change existing customer SAP functionality or processes. It is fully configurable with a custom namespace /KGT.

KGT partnered up with SAP regarding 'SAP Advanced Compliance Reporting for SAP HANA'. The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.

KGT also provides S/4 HANA transformation support.

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