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VAT (Tax) and Currency in Lesotho

VAT (Tax) and Currency in Lesotho

April 21, 2020

Contributor: Nkosikhona Phakathi

Are you doing business in Lesotho there are a few things to know.


Lesotho uses a currency called Loti which is subdivided into 100 Sentse, the Loti is pegged at 1:1 with the South African Rand through the common monetary area. Most businesses in Lesotho do accept the South African Rand as a local currency as well pegged at 1:1.

Coins in circulation are:

  • 5 lisente
  • 10 lisente
  • 20 lisente
  • 50 lisente
  • 1 loti
  • 2 maloti
  • 5 maloti

Notes in Circulation are:

  • 10 Maloti
  • 20 Maloti
  • 50 Maloti
  • 100 Maloti
  • 200 Maloti

Symbol L or M (pl.)


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.

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