Lebanon VAT Guide for 2026: Rates, Registration & Compliance
Lebanon's standard VAT is 11%. This guide covers the registration threshold, taxable scope, and filing obligations amid ongoing economic change.
Last updated
Key Takeaways
Lebanon applies a standard 11% VAT to most goods and services, though a Cabinet-approved proposal to raise the rate to 12% in early 2026 is not yet in force. Exports, export-related services, and international transport are zero-rated, while banking, financial, and insurance services are exempt. Cross-border services, including SaaS supplied by a foreign provider to a Lebanese business, are generally accounted for by the customer under an 11% reverse charge.
Taxability Snapshot
SaaS
Taxable (reverse charge, B2B)
Digital Goods
Taxable
Sales Tax Rates
Lebanon applies a standard 11% VAT to most goods and services.[2] A 0% rate covers exports and international transport, and banking, financial, and insurance services are exempt.[2] The tax authority is the Ministry of Finance.[1] A proposal to raise the standard rate to 12% was approved by the Cabinet in early 2026 but is not yet in force.[2]
Rate | Applies to |
|---|---|
Standard 11% | Most goods and services |
Zero 0% | Exports, export-related services, international transport |
Exempt | Banking, financial, and insurance services |
Lebanon's Cabinet approved a proposal in February 2026 to raise the standard VAT rate from 11% to 12%; the increase takes effect only after parliamentary legislation, which was not enacted as of July 2026.
Registration & nexus threshold
Registration is mandatory once taxable turnover reaches the LBP 5 billion threshold set by the 2024 Budget Law, measured over one to four consecutive quarters; importers and exporters must register regardless of turnover [1]. Lebanon has not published a dedicated simplified regime for non-resident digital sellers, so foreign suppliers should confirm current registration and representation requirements with the Ministry of Finance [1].
Filing frequency & deadlines
VAT is filed quarterly. Under the 2026 Budget Law, the periodic VAT declaration is due within one month of the end of each quarter, with payment due on the same deadline.[2] Lebanon has no mandatory general e-invoicing regime, though electronic reporting duties for stamp-duty documents have expanded.[2]
Exemptions
Exports, export-related services, and international transport are zero-rated, and banking, financial, and insurance services are exempt.[2] Cross-border services, including SaaS supplied by a foreign provider to a Lebanese business, are generally accounted for by the customer under the reverse charge at 11%.[2]
Lebanon has no US-style resale certificates. A VAT-registered business recovers the input VAT it pays on purchases and imports by deducting it from output VAT on its return, provided the purchases support taxable supplies and valid invoices are held [1]. Input VAT tied to exempt supplies is not recoverable. Net VAT payable equals output VAT minus deductible input VAT.
Penalties
Late filing carries a penalty of 5% of the tax per month, capped at 100% of the tax due, with minimum fines that vary by company type. Late payment accrues 1.5% per month on the outstanding VAT.[2]
The VAT Directorate of the Ministry of Finance reviews returns and can open audits, request records, and issue assessments where VAT is under-reported [1]. A taxpayer who disagrees with an assessment may file an objection with the Ministry of Finance and, if unresolved, escalate through the appeal channels set out in the VAT Law [1].
Sources
[1] Ministry of Finance, Lebanon, Value Added Tax, https://www.finance.gov.lb
Verified July 2026 against Lebanese Ministry of Finance guidance. Non-resident digital-services registration rules were not specified in official guidance at the time of writing.
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