The 2012 worldwide VAT, GST and sales tax guide

L EBANON 397
Mohammad Najjar +961 (1) 760-800
Email: mohammad.najjar@lb.ey.com
A. At a glance
Name of the tax
Value-added tax (VAT)
Date introduced 1 February 2002
European Union (EU)
member state
No
Administered by
Ministry of Finance
(http://www.finance.gov.lb)
VAT rates
Standard 10%
Other
Exempt and zero-rated
VAT number format Tax identification number
(TIN), followed by the VAT
number (indicating whether the
taxable person is an exporter;
for example, 1473-601)
VAT return periods Quarterly
Thresholds
LL 150 million
Recovery of VAT by
nonestablished businesses No
B. Scope of the tax
VAT applies to the following transactions:
• The supply of goods or services made in Lebanon by a taxable
person
• The importation of services by a person resident in Lebanon
• The importation of goods into Lebanon, regardless of the status
of the importer
C. Who is liable
A taxable person is an entity or individual who makes taxable
supplies of goods or services in the course of doing business in
Lebanon, in excess of the registration threshold. This definition
includes a permanent establishment of a foreign business in
Lebanon. The deadline for registration is two months after the
last day of the quarter in which the liability to register arose.
The VAT registration threshold is total turnover of at least LL 150
million in the preceding four quarters.
Voluntary registration. Any person that begins or performs an
independent economic activity that is liable to tax, or that is exempt
with the right of deduction in accordance with the provisions of
the VAT law, may voluntarily apply to become a taxable person,
regardless of the person’s level of turnover.
Group registration. The Lebanese VAT law does not allow VAT
group registration. Legal entities that are closely connected must
register for VAT individually.
Nonestablished businesses. A “nonestablished business” is a business
that has no fixed establishment in Lebanon. A nonestablished
business must register for VAT if it makes taxable supplies
in Lebanon.