Maseru – The Revenue Services Lesotho (RSL) has marked a pivotal milestone in its modernization journey with the development of an advanced electronic invoicing system (E-Invoicing solution). Initiated in January 2024, this innovative project promises to transform Value Added Tax (VAT) administration across Lesotho.
With system analysis and design currently in progress, RSL plans to engage stakeholders in the coming months to gather crucial input. The highly anticipated E-Invoicing System is scheduled for launch in October 2024.
This innovative solution is set to revolutionize the invoicing landscape, providing businesses with a more accurate and efficient means of VAT reporting. Following the system’s implementation, electronic VAT filing (E-Filing) will become operational in July 2025, simplifying the VAT filing process for businesses through the pre-population of tax returns. This leap forward is expected to significantly reduce administrative burdens and enhance compliance.
By 2026, RSL aims to achieve several ambitious objectives with the E-Invoicing solution, including increasing the VAT to GDP ratio from 8% to 11% and raising VAT’s contribution to total revenue from 40% to 50%. Additionally, the initiative seeks to reduce the volume of VAT-related debt and boost VAT registration rates from 11% to 15%.
The anticipated benefits of the E-Invoicing system are extensive. The solution will streamline processes, minimize non-compliance, make VAT return processes more efficient, simplify VAT refund verification, and decrease VAT-related debt. Moreover, it will lower VAT administration costs for both RSL and businesses and enable more informed and targeted audits, reducing the need for comprehensive audits.
RSL is committed to fostering economic growth and improving the business environment in Lesotho through innovative solutions like E-Invoicing. These developments are composed not only to streamline tax administration but also to make a substantial contribution to the country’s fiscal health.
