Customs Duties and VAT

Customs Duty is the revenue collected out of goods originating from Extra SACU, and collection of such  is dependent on the commodity type and country of origin as stipulated in the Tariff book. 
 
The Value Added Tax is the revenue collected out of business transactions, in Lesotho VAT may be  collected at the ports of entry as well as inland with the latter being collected by businesses which have  registered with the Lesotho Revenue Authority for the purposes of revenue collection. The applicable  rates of VAT in Lesotho as stipulated in the Value Added Tax Regulation, 2003 are 14% - standard rate,  15% - applicable of luxurious goods such as liquor, cigarettes and perfumes, with the addition of 5% on  electricity and phones as well as 0% applicable of agricultural products such as seedlings, pulses and  legumes. 
 
Upon importation of goods the officers at the ports of entry after satisfaction that a lodged declaration has 
fully complied with other Customs formalities may collect the duty and vat at the applicable rates.
 
Click here for more information on VAT Public Rulings