Taxation

Value Added Tax

VAT Violations and Penalties Table

Failure to comply with the tax obligations established by law may expose the taxable person to a range of financial penalties.
For a single violation, the highest applicable penalty among those imposed under Article 48 of the law applies.
The offender remains subject to the general laws insofar as they do not conflict with the provisions of the Value Added Tax Law, including the Penal Code, the Code of Civil Procedure, and the rules governing collection of indirect taxes.

Type of Violation	Applicable Penalty
1- Late or failure to submit a registration application	LBP 2,000,000 for joint-stock companies. LBP 1,000,000 for partnerships, limited liability companies, and entities excluded from tax. LBP 300,000 for individuals and other taxpayers.
2- Failure to notify the administration of a change in the taxpayer's name, address, activity, or legal form	LBP 200,000 for joint-stock companies. LBP 100,000 for partnerships, limited liability companies, and entities excluded from tax. LBP 50,000 for individuals and other taxpayers.
3- Late or failure to declare final cessation of business	LBP 2,000,000 for joint-stock companies. LBP 1,000,000 for partnerships, limited liability companies, and entities excluded from tax. LBP 300,000 for individuals and other taxpayers.
4- Late or failure to file the periodic declaration	5% of the tax due according to the declaration or the profit determined by the tax administration for each month of delay, or part of a month. The penalty may not exceed 100% of the tax due for each declaration and may not be less than: LBP 750,000 for joint-stock companies. LBP 500,000 for partnerships, limited liability companies, and entities excluded from tax. LBP 100,000 for individuals and other taxpayers.
5- Incorrect declaration	20% of the difference between the net tax due and the net tax declared, subject to a minimum penalty of: LBP 750,000 for joint-stock companies. LBP 500,000 for partnerships, limited liability companies, and entities excluded from tax. LBP 100,000 for individuals and other taxpayers.
6- Filing an amended periodic declaration	Within the original filing deadline: no assessment penalty is due. Within 30 days after the original filing deadline: no assessment penalty is due, provided the amendment does not result in additional tax exceeding 10% of the tax due. If the amendment results in additional tax exceeding 10% of the tax due, a penalty equal to 20% of the difference in the net tax due applies.
7- Omission of information from a declaration	If the omission does not result in additional tax, the penalty is: LBP 200,000 for joint-stock companies. LBP 100,000 for partnerships, limited liability companies, and entities excluded from tax. LBP 50,000 for individuals and other taxpayers.
8- Failure to issue an invoice when legally required	2% of the value of the transaction covered by the invoice.
9- Failure to show the tax number or other formal information on an invoice	0.5% of the value of the transaction covered by the invoice.
10- Failure to maintain accounting records and supporting documents	A penalty equal to 50% of the “declared non-net tax,” as stated in the legacy source, subject to a minimum of: LBP 750,000 for joint-stock companies. LBP 500,000 for partnerships, limited liability companies, and entities excluded from tax. LBP 100,000 for individuals and other taxpayers.
11- Obstruction of tax-control procedures	A penalty equal to 50% of the unpaid tax due, subject to a minimum of: LBP 750,000 for joint-stock companies. LBP 500,000 for partnerships, limited liability companies, and entities excluded from tax. LBP 100,000 for individuals and other taxpayers.
12- Preventing compulsory collection procedures	A penalty of 5% per month of the tax subject to compulsory collection, not exceeding the amount of tax to be collected and subject to a minimum of: LBP 750,000 for joint-stock companies. LBP 500,000 for partnerships, limited liability companies, and entities excluded from tax. LBP 100,000 for individuals and other taxpayers.
13- Issuing an invoice without legal entitlement	Three times the tax shown on the invoice. This penalty applies to persons not registered for VAT.
14- Issuing an invoice contrary to Article 38 of the law	25% of the tax due on the transaction covered by the invoice.
15- Failure to remit an amount shown as tax on an invoice or similar document	1.5% of the tax amount for each month of delay.

Reference: Chapter One of Title Four of Law No. 44 (Tax Procedures).