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TAX PERIOD |
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Legally, the tax is calculated at the end of each calendar month.
In the early stages of implementation , the tax period will be a quarter instead of a month.
Every taxable person should remit the tax return within 20 days from the end of the tax period.
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TAX MECHANISM |
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Simple mechanism of VAT calculation:
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| OUTPUT VAT |
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INPUT VAT |
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| (Collected VAT by Registered Trader from customers on sales) |
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(Paid VAT by Registered Trader on business purchases) |
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IF Tax Collected > Tax Paid
IF Tax paid > Tax collected |
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VAT due to tax authorities
VAT Credit (Refundable) | | |
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The collected VAT and the paid VAT should be supported by|INVOICES|
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VAT CREDIT AND REFUND |
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If, at the end of a tax period, the amount of the deductible tax exceeds the amount of the tax due, then the excess should be carried forward to the following period. The taxable person has the right to claim, at the end of any calendar year or at the end of the second quarter of each year, a refund for the excess of the input deductible tax. |
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VAT DUE |
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The VAT due to tax authorities should be paid through any of the accepted private banks or its operative branches in Lebanon within the deadline of the periodical tax return i.e. within 20 days from the end of each tax period.
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HOW TO FILE |
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All declarations, requests and returns shall be exclusively submitted though Liban Post in all their branches to the tax authority on specified forms prescribed for this purpose, according to the Minister Of Finance decision number 424 dated 25-03-2006. |