Lesotho VAT
Calculator 2026

Lesotho applies Value Added Tax (VAT) at a standard rate of 15%. VAT was introduced on 1 July 2003, replacing the previous general sales tax. As a member of the Southern African Customs Union (SACU), Lesotho's VAT system is closely aligned with that of South Africa, its sole neighboring country. A zero rate (0%) applies to exports, certain basic food items including maize meal, sorghum, beans, and milk, as well as agricultural inputs, fuel, and paraffin. Exempt supplies include financial services, residential rentals, public transport, medical and healthcare services, educational services, and the supply of water and electricity to domestic consumers. The Lesotho Revenue Authority (LRA) administers VAT. Businesses with annual taxable turnover exceeding LSL 850,000 must register for VAT. Those with turnover between LSL 500,000 and LSL 850,000 may register voluntarily. VAT returns are filed on a monthly basis, with payment due by the 20th of the following month. The LRA has implemented electronic filing and payment systems. Lesotho's economy is closely integrated with South Africa, and the VAT system reflects this relationship. Input VAT on business purchases can be reclaimed when used for making taxable supplies.