Lesotho - Register for Value Added Tax (VAT)

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Procedure

1. The application for registering Value Added Tax (VAT) can be done through the LRA Advice Center.
2. Application forms that are to be used for this purpose can be obtained from the following link : Application forms
3. After the completion of the registration a registration certificate will be provided to confirm the registration.

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Required Documents

List down the documents required for successfully completing the procedure.

e.g.
1. Proof of child birth from the Hospital.

Office Locations & Contacts

Applicant should contact the local LRA Advice Center for making the application.

Eligibility

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Fees

Explain the fees structure which is required for obtaining the certificate/document.

Validity

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e.g. Birth Certificate Valid Forever

Documents to Use

Application forms that can be used : Application forms

Sample Documents

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Processing Time

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Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	

Instructions

If you are a vendor and a provider of goods/services and your turnover exceeds the registration threshold, registration for VAT is compulsory.
You may register as a:

• A sole proprietor
• A partnership
• A limited company
• A club or association or trust.
  
  

Note  : It is important to note that registration will cover all parts of your business.

Living outside Lesotho : There is currently no legal requirement to register if you live or work outside Lesotho, except where you have a business that makes/undertakes supplies of goods and services in Lesotho. In such a case, you should appoint a representative who lives in Lesotho to undertake all your tax affairs. You should also register if you have a place of business in this country but you only supply goods or services abroad. That is, you should register for VAT even if your business is exclusively carried for export purposes.

Other Information
When calculating your turnover to see whether it exceeds the registration threshold, you add together all the sales of taxable goods and or services you have made since you started operating a business; both made in and outside Lesotho. You do not include supplies that are exempt from tax. But, you must remember to include supplies that are made for no consideration in the normal course of your business. For example, taxable benefits provided to an employee or a relative etc including goods taken for your own or your familys use.
Normally, you only have to consider the value of the taxable supplies you have made within the past 12 months. But if at any point in a 12 month period you discover that your sales of taxable supplies exceed the registration threshold, or will exceed the threshold by the end of 12 months, you must notify the Commissioner immediately and apply for registration.
It is against the law to deliberately omit other business activities whereby taxable supplies of goods or services are made so that you fall below the threshold. For example, it would be unlawful for a vendor to deliberately fragment a business and set up a number of small businesses where none exceeds the registration threshold; the Commissioner Taxpayer Services would add together the taxable turnover of the associated businesses to determine the actual turnover and issue a compulsory registration with effect from the time you should have registered. In such situation, an assessment would be raised for all the VAT that should have been paid to the LRA and appropriate penalties would also be imposed.

Required Information

A list which displays the kind of information which is required to complete the procedure.
e.g.
1. Date of Birth.
2. City or County of Birth.

Need for the Document

This procedure provides you information related to registering for Value Added Tax (VAT) in Lesotho.

Information which might help

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Other uses of the Document/Certificate

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e.g. Birth Certificate can be used as proof of identity.

External Links

Information on Registration for VAT

Others

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