On this day, 1 July 2003, Value Added Tax (VAT) was introduced in Lesotho to replace the general sales tax (GST).
The now Revenue Services Lesotho (RSL) administers the VAT, which is applicable on goods and services, whether locally produced or imported. There are four rates of VAT: 14% (the standard rate) on most goods and services; 15% on all alcoholic beverages and cigarettes; 5% on electricity and telephone services; and zero on certain goods (e.g. maize and pulses) as well as exports of goods and services (except exports of diamonds for which the VAT rate is 14%).
