How vat / sales tax works in Lebanon
Lebanese VAT defaults to 11% on domestic supplies, with output tax charged, input tax credited, and quarterly electronic returns.
Exports, international transport, basic foods, medicines, books, and agricultural supplies zero-rate or exempt with varying credit consequences.
A proposed rise to 12% awaits parliamentary approval, while financial, health, and education supplies sit largely exempt.
Tax rates at a glance
- Standard VAT
- 11%
- Proposed rise
- 12%
- Zero-rated supplies
- 0%
- Exempt supplies
- Exempt
- Registration line
- Turnover test
- Filing rhythm
- Quarterly
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersManufacturersFreelancersExpatsCross-border traders
Watch out for
- Pending 12% legislation means contracts need rate-change clauses rather than fixed 11% assumptions.
- Currency-crisis pricing with frozen foreign deposits complicates VAT-inclusive calculations and credit recovery.
- Offshore-company regimes interact with VAT registration where local supplies occur despite foreign structuring.
- Advance import taxes for non-compliant taxpayers add 2026 budget layers beside standard VAT.
Frequently asked questions
What is the VAT rate in Lebanon?
Lebanon applies 11% standard VAT in 2026, with zero-rating for exports and a proposed rise to 12% pending parliamentary approval.
Will Lebanon raise VAT to 12%?
A proposal awaits parliament amid reform talks and protests. Until enacted, 11% remains the law with contract clauses covering the change.
How often are Lebanese VAT returns filed?
Quarterly through electronic returns, with input credits conditioned on compliant invoice documentation.