Regulatory updates - Lesotho

The Value Added Tax (E-Invoicing) Regulations, 2026 (Legal Notice No. 25 of 2026) were published on March 27, 2026, and entered into force on April 1, 2026. The regulations establish an e-invoicing system known as the Invoice Data Management System (IDMS), which is operated by the Revenue Services Lesotho (RSL). Through this system, invoice data is transmitted electronically from businesses to RSL, allowing the tax authority to access transaction data in real time or near real time.

Under the framework, in-scope businesses must use RSL-accredited Electronic Billing Systems (EBS) and point-of-sale solutions that transmit invoice data to RSL through the Lekuka platform. The regulations require the use of digital certificates and digital signatures to ensure the authenticity and integrity of electronic invoices.

The rules also introduce accreditation requirements for EBS providers and define the obligations of taxpayers, service providers, and RSL. Penalties apply for non-compliance with the e-invoicing requirements.

Lesotho is preparing to implement an electronic invoicing system as part of its broader tax modernization efforts. The initiative is spearheaded by the Revenue Services Lesotho under the Ministry of Finance, with financial and technical support from the African Development Bank.

The e-invoicing system will cover business-to-business, business-to-government, and business-to-consumer transactions. It aims to enhance tax compliance, streamline VAT reporting, and integrate with existing systems. The groundwork began in September 2022 with a tender issued under the Lesotho Tax Modernization Project.

The 2025/26 Budget Speech reaffirmed the government’s strong interest in digital transformation, particularly in tax administration. To support small businesses, the VAT registration threshold will be raised from M850,000.00 to M2,000,000.00 (approx. from EUR 41,000 to 96,000)—reducing compliance burdens and encouraging investment.

While the system is still under development and no official launch date has been announced, the project reflects a significant step toward digital transformation in tax administration.

Earlier in September, the Revenue Services Lesotho (RSL) put out a procurement tender for the “Lesotho Tax Modernization Project” – a project for developing and implementing an e-invoicing solution, financed by the African Development Bank. This initiative is a significant step the Kingdom is taking to digitalize its economy and tax system.

The tender bidding process closed in late October this year, and we await further updates on the project. Stay tuned with Pagero for the latest news about e-invoicing in Lesotho.