SADC Member States

1. Angola
2. Botswana
3. DRC
4. Lesotho
5. Madagascar
6. Malawi
7. Mauratius
8. Mozambique
9. Namibia
10. Seychelles
11. South Africa
12. Swaziland
13. Tanzania
14. Zambia
15. Zimbabwe

1. Name of Tax, Levied in Terms of Which Act (Name, Number and Year)

Value Added Tax (VAT); VAT Act no. 9 of 2001

2. Institution Responsible for Administration

Lesotho Revenue Authority (LRA)

3. Taxpayer

Under section 5, Sales Tax is levied on every taxable supply in Lesotho made by registered vendors, in the course of furtherance of their enterprises and on every import of goods and services.

- A vendor is defined in section 1 as a person who is required to apply to be registered under the Act.
- Registration, as a vendor is compulsory where a person carries on an enterprise and total value of taxable supplies exceed registration threshold of M500 000.00 

4. Time When Tax is Levied

VAT is levied at the time of supply or importation. S.9(2)(d): - VAT is levied on the earliest of:

- the date on which the goods are delivered or made available, or the performance of the service is complete; or

- the date on which the invoice for the supply is issued; or

- the date on which payment (including part payment) for the supply is made.

5. Included in Tax Base

Under Section 12
- The supply of goods or services by a vendor for consideration in the course or furtherance of an enterprise carried on by the vendor.
- The importation of goods or services in Lesotho by any person.

6. Positive Rates

14% - Standard rate: (this applies to all other taxable supplies (goods/services) not listed below.

05% - Supply of electricity and telephone calls.

15% - Import and/or supply of alcoholic beverages and tobacco.

00% - Supplies listed in Schedule IV of the Act in terms of section 6A. This also applies to the exports of goods and/or services from Lesotho by a vendor.

7. List of Goods/Services at Zero Rate

Iterms listed in Schedule IV of the Act:

• agricultural inputs - fertilizers, seeds and pesticides;
• beans;
• bread;
• lentils
• livestock feed and poultry feed;
• maize (grain);
• maize meal;
• milk;
• paraffin intended for use as fuel for cooking, illuminating or heating;
• peas;
• sorghum meal;
• unmalted sorghum grain;
• wheat (grain);
• wheat flour

8. List of Goods/Services at Positive Rates Other Than Standard

• Supply of electricity and telephone calls (5%);
• Import and/or supply of alcoholic beverages and tobacco (15%).

9. List of Exemptions

The following supplies(goods/services) are exempted from VAT:

- the supply of public postal, transportation, medical or dental, financial, insurance, or educational services;

- the supply of unimproved land;

- the supply of water;

- the supply by way of lease or letting of immovable property; where:

• (a) the tenant is a manufacturer; and
• (b) the property is used by the manufacturer principally for carrying on a manufacturing enterprise.

10. Tax Period

Under section 1
- Vendors generally have one calendar month tax period, ending on the last day of the month.

Under section 24(1)
- A vendor shall file a sales tax return for each tax period with the commissioner within 20 days after the end of the period.

11. Deferement Schemes/Special Schemes

Import VAT Credit Facility (IVCF): where an 'approved' vendor is allowed to import goods without having to pay import VAT immediately at the port of entry. The VAT is due and payable inland at the later stage, (on the next filing period).

12. Beneficiary of Revenue

National Government

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Excise duties, Customs and Excise Act, No 10 of 1982

2. Institution Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

5. Tax Rate (Tariff Heading, Description, Rate Per Litre or Per Litre of Absolute Alcohol)

• Tariff item 104.10.20 Malt Beer
• M50.20 per litre of absolute alcohol
•  

• Tariff item 104.10.10 Sorghum beer
• 7.82 cents per litre
•  

• Tariff item 104.15.04 Unfortified still wine
• M1.98per litre
•  

• Tariff item 104.15.06 Fortified still wine
• M3.72per litre
•  

• Tariff item 104.17.15 Other still fermented beverages unfortified
• M2.33per litre
•  

• Tariff item 104.17.17 Other, still fermented beverages, fortified
• M4.73per litre
•  

• Tariff item 104.15.02 Sparkling wine
• M6.16 per litre
•  

• Tariff item 104.17.90 Other fermented beverages (excluding sorghum beer)
• M4.73per litre
•  

• Tariff item 104.20.10 Wine spirits, manufactured in Lesotho by the distillation of wine
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.15 Spirits manufactured in Lesotho, by the distillation of any sugar cane product
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.25 Spirits manufactured in Lesotho, by the distillation of any grain product
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.29 Other spirits manufactured in Lesotho
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.40 Imported spirits of any nature
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.40 Spirits of whatever nature in imported liqueurs, cordials and similar spirituous beverages.
• M77.67per litre of absolute alcohol

Note:
Alcoholic Fruit Beverages (AFBs) and ciders are charged at the rate applicable to other still fermented unfortifiedSpirit coolers are charged at the rate applicable to spirits

6. Rebates

This duty is intended to tax potable (ie for human consumption) alcohol. Alcohol used for other purposes such as intermediate products in manufacture or for medical purposes, is not intended to fall within the scope of duty. However to protect the revenue all alcohols are liable to duty and rebates are given to non-potable alcohol used for (approved) purposes. De-naturants are added to alcohol intended for commercial purposes to deter illicit consumption.

7. Beneficiary of Revenue

National Government, which forms part of the Southern African customs Unions (SACU), customs pool.

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Excise duties Customs and Excise Act, No 10 of 1982

2. Institution Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

Excise duties apply to certain locally manufactured goods and their imported equivalents. This duty is levied as a specific duty on tobacco products. Relief from excise duty is available where excisable products are exported.

5. Tax Rate (Tariff Heading, Description, Rate Per Kilogramme, or Per 10 Cigarettes/Cigars)

• Tariff item 104.30.20 Cigarettes
• M4.47per 10 cigarettes

• Tariff item 104.35.10 Cigarette tobacco (hand rolling)
• M183.04per KG

• Tariff item 104.30.10 Cigars
• M1,951.43per KG

• Tariff item 104.35.20 pipe tobacco
• M100.10per KG

6. Rebates

7. Beneficiary of Revenue

National Government, which forms part of the Southern African Customs Union, customs pool.

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Excise and Customs duty, Customs and Excise Act, No 10 of 1982

2. Institution Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

Customs duty which forms part of SACU Customs pool Excise duty for national revenue

5. Tax Rate (Rate of Duty Per Litre, Total Tax Burden as a Percentage of Retail Price)

Leaded petrol 3909c/l
Unleaded petrol 3904c/l
Diesel 3.817c/l

Petrol 3909c/l
Diesel 3.817c/l

6. Rebates/Concessions/Special Schemes

A rebate scheme is in place to allow some exceptions including farmers involved in primary production and for use in sea going vessels.

A beneficial duty rate is applied to unleaded petrol to encourage transition from leaded

7. Beneficiary of Revenue

National Government, which forms part of the Southern African Customs Union, customs pool.

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Excise and Customs duties, Customs and Excise Act, No 10 of 1982

2. Department Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

Waters including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow waters, including mineral waters, containing added sugar or other sweetening matter or flavoured and other non-alcoholic beverages (excluding fruit or vegetable juices).

5. Tax Rate (Tariff Heading, Rate Per Litre, or Per Kilogramme, or Per Unit)

The duty has been reduced to nil as announced in the 2002 budget review.

6. Rebates

7. Beneficiary of Revenue

National Government

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Ad Valorem Excise Duties, Customs and Excise Act, No 10 of 1982

2. Institution Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

Excise duty is levied on certain locally manufactured goods as well as their imported equivalents. This duty is levied as an ad valorem duty on luxury goods such as motor vehicles, cosmetics, computers, televisions and audio-equipment

5. Tax Rate

07% - gaming machines, photocopying equipment, printing, vending and office machines (including computers, fax machines and modems), and TV sets.

05% - motorcycles (200-800cc)

07% - clocks, firearms, motorcycles (greater than 800cc), photographic film

05% - hair-care products, perfumes, skin-care products, cosmetics and toiletries

07% - video equipment, hi-fi equipment, optical lenses, photographic/cinematographic equipment, pre-recorded tapes and compact discs

20% - motor vehicles (sliding scale) max

6. Special Methods (to deal with the specific needs of some industries)

This duty is levied on the value of the “finished” goods from the local manufacturer. Where the value of the “finished” goods is not readily determinable such as where a local manufacturer has an “integrated structure”, reductions from the wholesale or retail price are calculated based on an agreed “value determination” process to establish a fair taxable value.For the motorcar industry a special formula to take account of the variety of products is in place.

On imports this duty is levied on the customs value plus a 15% upliftment.

7. Beneficiary of Revenue

National Government, which forms part of the Southern African customs Unions (SACU), customs pool.

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate (specify ad valorem or specific)

6. Special Methods (to deal with the specific needs of some industries)

7. Beneficiary of Revenue

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate

6. Exemptions

7. Beneficiary of Revenue

1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate

6. Exemptions

7. Beneficiary of Revenue

1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate

6. Exemptions

7. Beneficiary of Revenue

1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

Road Traffic Amended Act No 9 b of 1992

2. Department Responsible for Administration

Traffic and Transport Department

3. Taxpayer

Vehicles Owners

4. Included in Tax Base

Part I to Part IV

5. Tax Rate

Registration Fees Motor Vehicle Clearance Fees Motor Vehicle with Clearance FeesMiscellaneous Fees

6. Exemptions/Rebates/Deferments/Special Schemes

7. Beneficiary of Revenue

1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate

6. Exemptions/Rebates/Deferments/Special Schemes

7. Beneficiary of Revenue

SADC Member States

1. Angola
2. Botswana
3. DRC
4. Lesotho
5. Madagascar
6. Malawi
7. Mauratius
8. Mozambique
9. Namibia
10. Seychelles
11. South Africa
12. Swaziland
13. Tanzania
14. Zambia
15. Zimbabwe

1. Name of Tax, Levied in Terms of Which Act (Name, Number and Year)

Value Added Tax (VAT); VAT Act no. 9 of 2001

2. Institution Responsible for Administration

Lesotho Revenue Authority (LRA)

3. Taxpayer

Under section 5, Sales Tax is levied on every taxable supply in Lesotho made by registered vendors, in the course of furtherance of their enterprises and on every import of goods and services.

- A vendor is defined in section 1 as a person who is required to apply to be registered under the Act.
- Registration, as a vendor is compulsory where a person carries on an enterprise and total value of taxable supplies exceed registration threshold of M500 000.00 

4. Time When Tax is Levied

VAT is levied at the time of supply or importation. S.9(2)(d): - VAT is levied on the earliest of:

- the date on which the goods are delivered or made available, or the performance of the service is complete; or

- the date on which the invoice for the supply is issued; or

- the date on which payment (including part payment) for the supply is made.

5. Included in Tax Base

Under Section 12
- The supply of goods or services by a vendor for consideration in the course or furtherance of an enterprise carried on by the vendor.
- The importation of goods or services in Lesotho by any person.

6. Positive Rates

14% - Standard rate: (this applies to all other taxable supplies (goods/services) not listed below.

05% - Supply of electricity and telephone calls.

15% - Import and/or supply of alcoholic beverages and tobacco.

00% - Supplies listed in Schedule IV of the Act in terms of section 6A. This also applies to the exports of goods and/or services from Lesotho by a vendor.

7. List of Goods/Services at Zero Rate

Iterms listed in Schedule IV of the Act:

• agricultural inputs - fertilizers, seeds and pesticides;
• beans;
• bread;
• lentils
• livestock feed and poultry feed;
• maize (grain);
• maize meal;
• milk;
• paraffin intended for use as fuel for cooking, illuminating or heating;
• peas;
• sorghum meal;
• unmalted sorghum grain;
• wheat (grain);
• wheat flour

8. List of Goods/Services at Positive Rates Other Than Standard

• Supply of electricity and telephone calls (5%);
• Import and/or supply of alcoholic beverages and tobacco (15%).

9. List of Exemptions

The following supplies(goods/services) are exempted from VAT:

- the supply of public postal, transportation, medical or dental, financial, insurance, or educational services;

- the supply of unimproved land;

- the supply of water;

- the supply by way of lease or letting of immovable property; where:

• (a) the tenant is a manufacturer; and
• (b) the property is used by the manufacturer principally for carrying on a manufacturing enterprise.

10. Tax Period

Under section 1
- Vendors generally have one calendar month tax period, ending on the last day of the month.

Under section 24(1)
- A vendor shall file a sales tax return for each tax period with the commissioner within 20 days after the end of the period.

11. Deferement Schemes/Special Schemes

Import VAT Credit Facility (IVCF): where an 'approved' vendor is allowed to import goods without having to pay import VAT immediately at the port of entry. The VAT is due and payable inland at the later stage, (on the next filing period).

12. Beneficiary of Revenue

National Government

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Excise duties, Customs and Excise Act, No 10 of 1982

2. Institution Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

5. Tax Rate (Tariff Heading, Description, Rate Per Litre or Per Litre of Absolute Alcohol)

• Tariff item 104.10.20 Malt Beer
• M50.20 per litre of absolute alcohol
•  

• Tariff item 104.10.10 Sorghum beer
• 7.82 cents per litre
•  

• Tariff item 104.15.04 Unfortified still wine
• M1.98per litre
•  

• Tariff item 104.15.06 Fortified still wine
• M3.72per litre
•  

• Tariff item 104.17.15 Other still fermented beverages unfortified
• M2.33per litre
•  

• Tariff item 104.17.17 Other, still fermented beverages, fortified
• M4.73per litre
•  

• Tariff item 104.15.02 Sparkling wine
• M6.16 per litre
•  

• Tariff item 104.17.90 Other fermented beverages (excluding sorghum beer)
• M4.73per litre
•  

• Tariff item 104.20.10 Wine spirits, manufactured in Lesotho by the distillation of wine
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.15 Spirits manufactured in Lesotho, by the distillation of any sugar cane product
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.25 Spirits manufactured in Lesotho, by the distillation of any grain product
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.29 Other spirits manufactured in Lesotho
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.40 Imported spirits of any nature
• M77.67per litre of absolute alcohol
•  

• Tariff item 104.20.40 Spirits of whatever nature in imported liqueurs, cordials and similar spirituous beverages.
• M77.67per litre of absolute alcohol

Note:
Alcoholic Fruit Beverages (AFBs) and ciders are charged at the rate applicable to other still fermented unfortifiedSpirit coolers are charged at the rate applicable to spirits

6. Rebates

This duty is intended to tax potable (ie for human consumption) alcohol. Alcohol used for other purposes such as intermediate products in manufacture or for medical purposes, is not intended to fall within the scope of duty. However to protect the revenue all alcohols are liable to duty and rebates are given to non-potable alcohol used for (approved) purposes. De-naturants are added to alcohol intended for commercial purposes to deter illicit consumption.

7. Beneficiary of Revenue

National Government, which forms part of the Southern African customs Unions (SACU), customs pool.

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Excise duties Customs and Excise Act, No 10 of 1982

2. Institution Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

Excise duties apply to certain locally manufactured goods and their imported equivalents. This duty is levied as a specific duty on tobacco products. Relief from excise duty is available where excisable products are exported.

5. Tax Rate (Tariff Heading, Description, Rate Per Kilogramme, or Per 10 Cigarettes/Cigars)

• Tariff item 104.30.20 Cigarettes
• M4.47per 10 cigarettes

• Tariff item 104.35.10 Cigarette tobacco (hand rolling)
• M183.04per KG

• Tariff item 104.30.10 Cigars
• M1,951.43per KG

• Tariff item 104.35.20 pipe tobacco
• M100.10per KG

6. Rebates

7. Beneficiary of Revenue

National Government, which forms part of the Southern African Customs Union, customs pool.

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Excise and Customs duty, Customs and Excise Act, No 10 of 1982

2. Institution Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

Customs duty which forms part of SACU Customs pool Excise duty for national revenue

5. Tax Rate (Rate of Duty Per Litre, Total Tax Burden as a Percentage of Retail Price)

Leaded petrol 3909c/l
Unleaded petrol 3904c/l
Diesel 3.817c/l

Petrol 3909c/l
Diesel 3.817c/l

6. Rebates/Concessions/Special Schemes

A rebate scheme is in place to allow some exceptions including farmers involved in primary production and for use in sea going vessels.

A beneficial duty rate is applied to unleaded petrol to encourage transition from leaded

7. Beneficiary of Revenue

National Government, which forms part of the Southern African Customs Union, customs pool.

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Excise and Customs duties, Customs and Excise Act, No 10 of 1982

2. Department Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

Waters including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow waters, including mineral waters, containing added sugar or other sweetening matter or flavoured and other non-alcoholic beverages (excluding fruit or vegetable juices).

5. Tax Rate (Tariff Heading, Rate Per Litre, or Per Kilogramme, or Per Unit)

The duty has been reduced to nil as announced in the 2002 budget review.

6. Rebates

7. Beneficiary of Revenue

National Government

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

Ad Valorem Excise Duties, Customs and Excise Act, No 10 of 1982

2. Institution Responsible for Administration

Lesotho Revenue Authority - Customs and Excise

3. Taxpayer

Importers and/or Local Manufacturers

4. Included in Tax Base

Excise duty is levied on certain locally manufactured goods as well as their imported equivalents. This duty is levied as an ad valorem duty on luxury goods such as motor vehicles, cosmetics, computers, televisions and audio-equipment

5. Tax Rate

07% - gaming machines, photocopying equipment, printing, vending and office machines (including computers, fax machines and modems), and TV sets.

05% - motorcycles (200-800cc)

07% - clocks, firearms, motorcycles (greater than 800cc), photographic film

05% - hair-care products, perfumes, skin-care products, cosmetics and toiletries

07% - video equipment, hi-fi equipment, optical lenses, photographic/cinematographic equipment, pre-recorded tapes and compact discs

20% - motor vehicles (sliding scale) max

6. Special Methods (to deal with the specific needs of some industries)

This duty is levied on the value of the “finished” goods from the local manufacturer. Where the value of the “finished” goods is not readily determinable such as where a local manufacturer has an “integrated structure”, reductions from the wholesale or retail price are calculated based on an agreed “value determination” process to establish a fair taxable value.For the motorcar industry a special formula to take account of the variety of products is in place.

On imports this duty is levied on the customs value plus a 15% upliftment.

7. Beneficiary of Revenue

National Government, which forms part of the Southern African customs Unions (SACU), customs pool.

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate (specify ad valorem or specific)

6. Special Methods (to deal with the specific needs of some industries)

7. Beneficiary of Revenue

1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate

6. Exemptions

7. Beneficiary of Revenue

1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate

6. Exemptions

7. Beneficiary of Revenue

1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate

6. Exemptions

7. Beneficiary of Revenue

1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

Road Traffic Amended Act No 9 b of 1992

2. Department Responsible for Administration

Traffic and Transport Department

3. Taxpayer

Vehicles Owners

4. Included in Tax Base

Part I to Part IV

5. Tax Rate

Registration Fees Motor Vehicle Clearance Fees Motor Vehicle with Clearance FeesMiscellaneous Fees

6. Exemptions/Rebates/Deferments/Special Schemes

7. Beneficiary of Revenue

1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year

2. Department Responsible for Administration

3. Taxpayer

4. Included in Tax Base

5. Tax Rate

6. Exemptions/Rebates/Deferments/Special Schemes

7. Beneficiary of Revenue