Revenue Services Lesotho Hosts Liberia Revenue Authority for VAT Implementation Study Tour

Revenue Services Lesotho (RSL) hosted a four-day Value Added Tax (VAT) implementation study tour for the Liberia Revenue Authority (LRA) from 23^rd to 26^th February, 2026 in Maseru, Lesotho.

The initiative was part of Liberia’s ongoing preparations to operationalize its VAT framework following the enactment of enabling legislation in 2024. The programme focused on sharing Lesotho’s practical experience in implementing and administering a modern consumption tax system, offering lessons that are both practical and directly applicable.

Liberia remains the only member of the Economic Community of West African States (ECOWAS) yet to implement VAT. As part of its broader tax reform agenda and regional commitments, the country has enacted VAT legislation and is progressing toward operational readiness, with the official launch scheduled for 1^st January 2027.

The study tour was timed at a pivotal stage in Liberia’s reform journey, as the country transitions from legislative design to operational implementation. This phase involves developing administrative systems, processes, and institutional capacity to support the VAT framework. The reform is expected to modernize the tax system, reduce cascading taxation, strengthen domestic revenue mobilization, and enhance regional trade integration.

Lesotho’s successful transition from a General Sales Tax to VAT, combined with over 20 years of experience in VAT administration, positions RSL as a leading peer-learning partner. Operating in an economic and institutional context comparable to Liberia, RSL was able to provide insights that are both practical and directly relevant to the LRA.

The study tour offered the LRA delegation a complete perspective of VAT implementation from legislative design and institutional readiness to operational execution and digital system support.

The primary objective was to provide the LRA delegation with a comprehensive understanding of VAT implementation. RSL shared practical insights covering:

• Project governance and implementation strategy;

• Legislative design and administrative frameworks;

• Operational processes from registration to refunds;

• Digital systems and data analytics;

• Stakeholder engagement and taxpayer readiness; and

• Post-implementation challenges and continuous improvement.

Key Highlights from the Programme

1. VAT Implementation Strategy and Governance: RSL presented its implementation model emphasizing strong governance, clear institutional roles, and coordinated rollout strategies across divisions. The importance of a dedicated VAT function and alignment between policy, operations, and IT systems was highlighted as critical for success.

   
   

2. Legislative and Institutional Framework: Delegates explored Lesotho’s VAT legal framework, including legislation and amendments, appeals mechanisms, and administrative procedures. Sessions emphasized the need for clear, adaptable legislation supported by practical administrative tools.

   
   

3. Capacity Building and Change Management: Lessons included structured staff training, internal coordination, and clear communication of reform objectives. RSL also highlighted early challenges, stressing executive ownership and business alignment as vital for smooth transition.

   
   

4. Taxpayer Readiness and Stakeholder Engagement: RSL showcased a multi-channel engagement approach, including collaborations with business and professional associations, public awareness campaigns via radio, television, SMS, and social media, and a 24/7 AI chatbox for taxpayer inquiries. These measures ensured taxpayer readiness and smooth adoption of VAT.

   
   

5. Core VAT Operations: Delegates observed registration, return filing, payment, and refund workflows, including risk-based verification and fraud detection. Efficient refund systems were emphasized as essential for maintaining taxpayer confidence.

   
   

6. Digital Systems and Data Management: RSL demonstrated integrated systems for registration, filing, and payments, along with data analytics for compliance monitoring and dashboards for decision-making. Technology’s role in improving efficiency, transparency, and compliance was a key takeaway.

   
   

7. Sustainability and Continuous Improvement: Post-implementation realities included system refinements, addressing data integrity challenges, institutionalizing lessons learned, and progress on RSL’s e-invoicing implementation.

   
   

   Delegates also received a presentation comparing VAT and GST performance. The analysis convincingly demonstrated that in the early years, VAT outperformed GST in revenue generation and operational efficiency, a trend expected to continue over time. This reinforced the effectiveness of VAT as a modern, sustainable consumption tax system.

   
   

8. Live System Demonstration: Participants had hands-on experience with RSL’s VAT system, linking policy concepts to operational functionality through modules for registration, filing, payments, and refund management.

In his remarks, the Acting Commissioner General of Revenue Services Lesotho (RSL), Mr. Rakokoana Makoa highlighted the importance of institutional collaboration in promoting effective tax administration, innovation, and improved compliance frameworks.

LRA Domestic Tax Commissioner and Head of Delegation, Ms. Margaret P. Krote, expressed appreciation for the warm reception and technical insights shared, noting that lessons from Lesotho’s experience will help refine Liberia’s VAT implementation framework and ensure a smooth transition on the 1^st January 2027.

The LRA benchmarking mission to RSL was supported by the International Monetary Fund (IMF) through its AFRITAC West 2 Center, with Regional Tax Administration Advisor, Ms.  Idia Penane accompanying the Delegation.

RSL remains committed to supporting peer administrations through knowledge sharing and capacity building, with this exchange representing a significant step in strengthening regional cooperation and advancing VAT implementation across the continent.