The Value Added Tax (Amendment) Act, 2025 made private medical services taxable for the first time, with a registration deadline of 31 July 2026 and charging to begin on 1 August 2026. Medical practitioners, private hospitals and medical aid schemes raised concerns through July.
On 30 July 2026 BURS published a notice suspending the charging of VAT on private medical services “to allow consultation with key stakeholders and the general public”. The notice carries no end date and no statutory instrument has been gazetted, so the suspension rests on the BURS announcement alone and charging could resume.
Other parts of the amendment are unaffected. Prescription medicines moved from exempt to zero-rated, which lets pharmacies recover input VAT. The extended twelve-month input claim window and the reverse charge on imported services still apply.
Practices that charged VAT on or after 1 August 2026 should reverse it and refund or credit patients and medical aids.
What this means for you
- Do not de-register or unwind your VAT set-up; keep the configuration ready for a resumption.
- If you charged VAT on medical services in August, issue credit notes now.
- Pharmacies should review input VAT recovery on prescription stock from 1 July 2026.
If any of these points apply to your organisation, talk to us. We will tell you what needs to change and what it will take.
BURS public notice, 30 July 2026
Botswana Daily News (BOPA)
Published 31 July 2026. This article is general information, not advice for a specific situation.