The Lesotho Revenue Authority (LRA) has announced new cross border administration procedures, for movable goods purchased in South Africa and indirectly exported to Lesotho in Maseru yesterday.

The LRA Commissioner Mr Thabo Khasipe said before LRA was established, Lesotho citizens who bought goods in South Africa were requires to pay VAT at a point of sale, and be refunded at the cross border on the South African customs offices at the cross borders, so that they will pay on the Lesotho customs offices.

He said later the governments of the two countries agreed that when one has paid VAT in South Africa, he must be allowed to give out Tax Invoice to the Lesotho customs offices at the cross borders.

Mr Khasipe said Lesotho through LRA used to collect the VAT in South Africa using those Tax Invoices, as VAT is paid to the countries in which the exports will be used.

He further explained that LRA and the South African Revenue Services (SARS), had agreed on the terms and conditions of the Tax Invoice that will make it an acceptable legal document that can be used, although those terms and conditions were changed due to the challenges they were faced with.

He said lately LRA and SARS have agreed that on top of the terms and conditions of the Tax Invoice, people are now required to provide proof of payment.

He further said the proof of payment is required when the movable goods worth M10 000 and more, and that among the new administration procedures, Basotho are required to pay VAT cash when importing movable goods from South Africa into Lesotho at the cross borders.