Current Status of Electronic Invoicing in Lesotho

Lesotho’s tax authority is preparing to implement e-invoicing as part of an ambitious tax modernization plan. In recent years, the country has launched several digital initiatives to improve tax collection, in line with the broader regional trend across Africa.

Government and Institutional Stakeholders Involved

The push toward e-invoicing in Lesotho involves several key stakeholders. First and foremost, the Revenue Services Lesotho (RSL)—formerly known as the Lesotho Revenue Authority—is the agency leading the project. Under the supervision of the Ministry of Finance, RSL is responsible for defining the e-invoicing model to be implemented and coordinating the necessary developments. So far, the government plans to introduce e-invoicing for B2B2G (business-to-business-to-government) and B2C (business-to-consumer) transactions. The final details of the system’s technological and operational model are still pending confirmation from RSL.

On the financing and advisory side, the African Development Bank (AfDB) has a vital role. This multilateral organization is funding the tax modernization project that includes e-invoicing, providing both financial support and institutional backing. 

Next Steps for E-Invoicing Implementation in Lesotho

Lesotho began its journey toward adopting e-invoicing with VAT collection. The process started in September 2022, when the Revenue Services Lesotho (RSL), the country’s tax authority, launched a tender for the “Lesotho Tax Modernization Project,” with the goal of developing and implementing an e-invoicing solution funded by the African Development Bank.

Currently the system is still under development. While tax authorities have expressed their intention to make e-invoicing mandatory, no official launch dates have been set yet.

Legal and Regulatory Framework for E-Invoicing in Lesotho

Implementing e-invoicing in Lesotho will require adjustments to the existing legal and regulatory framework. At present, the country’s VAT legislation must be updated to recognize the legal validity of electronic invoices and, eventually, to mandate their use in specific sectors.
As part of the ongoing project, a comprehensive legal reform is planned. This includes amending the VAT Act to introduce concepts such as electronic invoices and fiscal devices, regulating the acceptance of digital invoices as valid proof for both tax and accounting purposes, and ensuring interoperability with companies’ accounting systems.
Although no official start date for the mandate has been announced yet, the authorities’ intentions are clear. The system will first be introduced on a voluntary or pilot basis. After evaluating its performance, regulations are expected to be issued to make e-invoicing mandatory in phases. 

Advantages of a Global E-Invoicing Solution

For companies, especially those operating in multiple countries, adapting to various e-invoicing systems can be a complex challenge. This is where partnering with a global specialized provider like EDICOM makes a real difference. With a single international platform, businesses can manage their e-invoicing processes centrally while staying fully compliant with each country’s regulations, including those in Lesotho without having to build local solutions from scratch. 

For instance, the EDICOM Global Compliance platform simplifies the adaptation of your processes to the e-invoicing requirements defined by each tax authority, while automatically keeping up with any regulatory changes. This means that if the RSL introduces new technical or legal requirements, the global provider will integrate them into the platform, freeing you from the technological burden of adapting on your own.

Some specific advantages of a global e-invoicing solution include:

• Guaranteed compliance: Your company can issue legally valid e-invoices in Lesotho and dozens of other countries using a single system, with the confidence that each document meets local requirements (format, content, digital signature, etc.). Global providers continuously monitor regulatory developments (such as the Lesotho project) to quickly implement any changes.
• Integration and efficiency: These platforms typically integrate seamlessly with your ERP or management software, automating the generation, sending, and receipt of invoices. By eliminating manual processes, you reduce errors and streamline operations. In Lesotho, for example, a provider like EDICOM could connect your invoicing system to RSL's platform, enabling real-time reporting without friction.
• Cost and resource savings: By centralizing management, you avoid the need for multiple local solutions. This reduces maintenance, certification, and development costs. Additionally, you gain access to specialized support to help you meet tax requirements without needing to become an expert in Lesotho’s (or any other country’s) regulations.