VAT Calculator Lesotho (15%)

Exports of goods and services are zero-rated under section 6A(1) of the VAT Act 2001, as inserted by Act No. 6 of 2003. Zero-rated goods are restricted to Schedule IV, which as enacted lists fertilisers, seeds and pesticides; beans, lentils and peas; bread; livestock and poultry feed; maize grain and maize meal; milk; paraffin for cooking, lighting or heating; sorghum grain and meal; and wheat grain and wheat flour. The Minister may re-determine the rate by regulation.

Exempt supplies are different from zero-rated ones, because no input VAT can be claimed against them. Section 6(2) exempts public postal, transport, medical, dental, financial, insurance and education services, unimproved land, water, and the letting of property to a manufacturer for manufacturing. The 2003 amendment added low-income housing schemes, accommodation let under a dwelling lease, non-profit hostels, amateur sport, cultural activities and approved charity events.

On pricing, section 86 stops anyone advertising that VAT is absorbed or not part of the price. Between vendors the price is stated exclusive of VAT, with the tax in a separate column. Sales to non-vendors must be priced inclusive of VAT, shown by a notice on the premises or on the invoice.