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.