Botswana: Reduced VAT rate extended through 31 March 2023

Extended application of reduced VAT rate of 12%

Extended application of reduced VAT rate of 12%

The Minister of Finance on 13 January 2023 published Statutory Instrument (SI) No. 5 of 2023, which extended the application of the reduced value added tax (VAT) rate of 12% through 31 March 2023.

The VAT rate was scheduled to revert to 14% on 3 February 2023. Read TaxNewsFlash

However, the zero rating of cooking oil and liquid petroleum gas will lapse on 2 February 2023 and the standard rate of 12% will apply on these products effective from 3 February 2023. The transitional rules stipulated in section 70 of the VAT are to be applied so that VAT is charged at the correct rates based on the time of supply rules relative to supplies of cooking oil and liquid petroleum gas.

For more information, contact a KPMG tax professional in Botswana:

Natasha Mulenga |

Leonard Muza |

Kenneth Sakonda |


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