List of VAT Zero Rated Items in Botswana

List of VAT Zero Rated Items in Botswana

What are VAT Zero Rated Items?

A zero-rated supply is a taxable supply taxed at a rate of 0%. Export of goods and services are zero- rated supplies. The reason for classifying exported goods and service as zero-rated supplies is to encourage exports.

List of VAT Zero Rated Items in Botswana

Zero-rated are charged on the following supplies: export of goods and services. petrol, diesel oil and illuminating paraffin. sorghum or maize for human consumption that is not cooked as a meal or prepared as a food.

Frequently Asked Questions

What items are zero-rated for VAT?

The Zero-Rated services can include things like books, newspapers, and most food. And even though there is no VAT charged, you still need to record the sale of any zero rate goods and services. You must report that information on your VAT return

What products zero-rated?

Often, goods and services that are zero-rated are those that are considered necessary, such as food items, sanitary products, and animal feeds. Examples of zero-rated goods include certain foods and beverages, exported goods, equipment for the disabled, prescription medications, water, and sewage services.

Is cooking oil zero-rated in Botswana?

The standard VAT rate is reduced from 14% to 12%; and. Cooking oil and liquified petroleum gas (LPG) are zero-rated for VAT.

Is there VAT in Botswana?

VAT is imposed on taxable supplies and the importation of goods and certain services into Botswana. The standard VAT rate of 12% applies to all supplies that do not qualify for an exemption or are not zero-rated for six months from 3 August 2022.

What is the difference between no VAT and zero-rated?

Goods and services categorised as 0% or zero-rated VAT are still taxable goods, but the rate of VAT charged is 0%. VAT exempt goods and services are not taxable, and no VAT can be charged on them.

What 3 items are VAT exempt?

Cultured milk. Brown wheaten meal. Eggs. Edible legumes and pulses of leguminous plants.

Are clothes zero rated?

Clothing and shoes for young children are charged at zero rate VAT.

Is fuel VAT exempt in Botswana?

Standard rate of 14% for most goods and services. Zero-rated are charged on the following supplies: export of goods and services. petrol, diesel oil and illuminating paraffin.

Are vegetables zero rated or exempt?

The supply of vegetables and fruit that have not been cooked or treated in any manner except for the purpose of preserving such vegetables and fruit in their natural state, is zero-rated under section 11(1)(j) read with Item 12 and Item 13 respectively.

Is food exempt or zero rated?

Common items that are always zero rated are food (with some exceptions), books, public transport (not taxis) and clothing (children and protective clothing).

When was VAT introduced in Botswana?

Value Added Tax (VAT) was introduced in Botswana with effect from 1 July 2002 replacing the Sales Tax system which was at import and manufacture’s level as well as on some services.