The Ministry of Finance (MoF) has required taxpayers to record transactions in foreign currencies at the real exchange rate of the lira instead of the official rate of LL1,507.5. This will increase the value added tax (VAT). VAT paid at the Customs on imported goods will continue to be valued at the official rate for the time being. MoF has also notified businesses and self-employed professionals that they must comply with the consumer protection law and state the value of invoices issued to end consumers in lira.
Multiple rates
Businesses are required to record transactions in foreign currencies at the real exchange rate of the lira used in each operation, according to the MoF. Up till now, firms were recording transactions at the official exchange rate. The differences between the official rate and the market rate were recorded either as expense or revenue. MoF means by the real rate any exchange rate adopted in a transaction. It could be the official rate in case of payments made by checks in, Vice Chairman of the Lebanese Association of Certified Public Accountants (LACPA) and member of the Higher Council of Accounting.
