How to Calculate Vat in Botswana

Value-Added Tax

Value-Added Tax (VAT) is a tax, which is payable on sales of goods or services within the territory of the Member States of the EU. The tax, in all cases, is ultimately payable by the final consumer of the good or service.

The local name for VAT in Botswana is Value-added tax (VAT). There is basically 1 VAT rate in Botswana: the Standard VAT rate is 14%

If you want to add VAT to the price, you just need to divide the price by 100 and then multiply by (100 + VAT rate).

  1. Enter the Price Of Goods Excluding VAT, Then Multiply The Cost Of Goods By the 14% VAT Rate
  2. Divide The Number By 100 To Get The Cost Of Goods Inclusive of VAT In Botswana

The Result Of Your Calculation Is Your VAT Price, Including VAT. For Example: P175 / 15 X 100 = P 203,00. This Means The VAT Amount At 14%, Pate, Is R 28,00.

You calculate 14% VAT by calculating the net amount x 1.20, then you have the gross amount. If you want to know how much VAT is in the amount, you the gross amount / 15 = net amount *100. The result is the VAT included.

The tax amounts for all tax codes are added to the sub-total to derive the total for the transaction. You buy an item for 1,000 plus 14% goods and services tax. If the amount of 1,000 is tax-exclusive, 14% tax is added to it, increasing the total to 1,10

VAT exclusive price is the price of goods or services before VAT is added. The use of VAT exclusive prices should only be used when the prices are aimed at buyers who can recover any VAT charged, for example ‘trade prices’ for businesses.

Botswana, a landlocked African country with 2 million population has a standard VAT rate of 12 %. VAT (sales tax) was implemented in the year 2001. VAT has been increased from 10% to the current rate of 12%. Few goods and services are treated as zero-rated supplies and zero percent VAT is applied to them. Zero-rated supplies are listed in the first schedule of the VAT act.

Find the VAT price and net price in Botswana (GST % is 12) for an amount of 25000 P

Add Tax

Solution :
GST % = 12
Amount = 25000

Step 1 :
GST Price = (25000 * 12 ) / 100
     = 3000 P

Step 2 :
Net Price = 25000 + 3000
     = 28000 P

Hence the VAT Price is 3000 P and Net Price is 28000 P

Remove Tax

Solution :
GST % = 12
Amount = 25000

Step 1 :
GST Price = 25000 – (25000 * ( 100 / (100 + 12)))
                 = 25000 – (25000 * 0.89)
                 = 25000 – 22321.43
                 = 25000 – 22321.43
GST Price = 2678.57 P

Step 2 :
Net Price = 25000 – 2678.57
                = 22321.43 P

Hence the VAT Price is 2678.57 P and Net Price is 22321.43 P

What is the formula to calculate VAT?

The simple VAT formula is: Multiply net sales price by 1 + VAT rate.

How much is VAT in Botswana?


Value-added tax (VAT)

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.

How is Botswana’s tax calculated?

A non-resident is taxable on earned income in accordance with the PIT rates but pays to withhold tax (WHT) only at the rate of 15% for interest, commercial royalties, and management and consultancy fees, 10% for dividends, and 10% for entertainment fees, where such income is of Botswana origin.