The Kingdom of Lesotho has introduced VAT at the standard rate of 14% today. Persons importing goods into Lesotho will be liable to VAT which, generally speaking, will be levied at the time of importation by the Lesotho Revenue Authority (LRA).
Lesotho residents who are "qualifying purchasers" for purposes of the South African Value-Added Tax Act may lodge tax invoices in respect of goods purchased in South Africa and subsequently exported to Lesotho with the Lesotho Customs officers. The refund of South African VAT will be allowed as a credit against the VAT levied by Lesotho and SARS will pay the refunded VAT to the LRA. Persons who fail to follow this procedure will be liable for VAT in Lesotho and will not be refunded the VAT levied in South Africa. Lesotho will not levy VAT on imports of less than R150 and nor will the South African VAT be refunded on such exports.
The credit mechanism will not apply in respect of second-hand goods, as in some cases the South African VAT refundable is limited to the VAT on the dealers mark up. VAT will accordingly be levied on the full value of the second-hand goods imported into Lesotho. A claim for a refund of the South African VAT may, however, be lodged with the Lesotho Revenue Authority. Once the claim has been processed by SARS a refund of the South African VAT will be made to the qualifying purchaser.
Exports exceeding R5 000 are regarded as "commercial exports" and the Customs declaration CCA1 must be completed and submitted to both the South African and the Lesotho Customs officials.
Tel (012) 422-5108
Fax (012) 422-5194
Lesotho Revenue Authority
Tel (09266) 2232-3294
Fax (09266) 2232-3295
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE