New VAT Law Requires Offshore Tourism Agents to Register in Botswana

New VAT Law Requires Offshore Tourism Agents to Register in Botswana. The Ministry of Finance has officially enacted the Value Added Tax (Amendment) Bill 2025, compelling all offshore tourism agents selling tourism facilities in Botswana to register for normal VAT. The move marks a major step in ensuring fair tax compliance and revenue collection within the country’s tourism industry.

The Bill, which was published in the Government Gazette on 8 August 2025 and later passed by Parliament on 16 August 2025, introduces new compliance measures targeting foreign-based agents who market and sell local tourism products such as safaris, lodges, and travel packages.

According to the Ministry, this amendment aims to level the playing field for domestic tourism operators who have long been subject to VAT while offshore agents benefited from exemptions. By bringing all players under the same tax framework, Botswana seeks to enhance transparency, fairness, and local revenue retention from its booming tourism sector.

Tax and finance experts note that this legislative change could improve Botswana’s fiscal position while also ensuring that a greater share of tourism proceeds remains within the local economy. However, they also highlight that compliance mechanisms will need to be clearly defined to ensure smooth implementation.

In light of these developments, a special VAT Amendment Bill 2025 workshop will be held on 14 November 2025 at Maun Lodge to unpack the finer details of the law, its impact on tourism businesses, and the steps offshore agents must take to comply.