VAT REGISTRATION PROCESS
What is Value Added Tax (VAT)?
VAT is an indirect tax that is paid by a person who consumes or imports goods and or services in Lesotho.
Who is required to register for VAT?
• A person who makes taxable supplies exceeding registration threshold of M 850,000.00 per annum is required to register for VAT.
When is a person required to register for VAT?
Anytime when they reach required VAT registration threshold either at the end or the beginning of a 12-month period.
What are the requirements for VAT registration?
The requirements for registration of VAT are as follows:
• An application letter for VAT registration,
• Completed business registration form, and
• Cash flow projections statement,
How long does it take complete VAT registration?
• The registration would be done within 7 working days after receipt of application
What are the consequences for failure to register for VAT?
A person who fails to register for VAT shall be liable to pay additional tax at rate of 22% per annum on VAT liability.