Expense management module › Global expense management › Lesotho
Last updated : 12.05.2026
Expense rules in Lesotho.
Lesotho applies VAT at 15%. Enclave within South Africa, LSL pegged to ZAR (1:1).
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1Expense rules & reclaimable VAT
VAT 15% standard, 12% fuel, 9% alcohol. ZAR accepted (1:1 peg).
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 15% | Deductible | Tax invoice + VAT no |
| Lodging | 15% | Deductible | VAT registration |
| Alcohol | 9% | Limited | Excluded |
| Fuel | 12% | Deductible | Invoice |
| Transport | 15% | Deductible | Taxi/airfare |
| Gifts | 15% | Non-deductible | Cap |
Receipt
Tax invoice
VAT number
SourcesLesotho Revenue Authority
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | Invoice |
| Company car | – | Card | – |
| Taxi | – | 100% receipt | Invoice |
Tracking
Logbook
Date, distance
SourcesLesotho Revenue Authority
3Per diem and travel allowances
Company policy. Maseru main city.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Maseru | LSL 150 | LSL 550 | LSL 900 |
| Teyateyaneng | LSL 130 | LSL 450 | LSL 750 |
| Mafeteng | LSL 120 | LSL 420 | LSL 700 |
| Other | LSL 100 | LSL 380 | LSL 600 |
Conversion
~1 EUR = 20 LSL
ZAR peg
SourcesLesotho Revenue Authority
4Foreign VAT recovery
Residents only.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident | Credit | Bi-monthly | Return |
| Non-resident | None | – | Final cost |
| Textile/MFEZ | Incentives | Per approval | Regime |
Limitations
5 years
Keep
SourcesLesotho Revenue Authority
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