# Rule: VAT (Lebanese)

- Standard Lebanese VAT rate is **11%** (the posting logic divides VAT-inclusive amounts by 1.11 to extract the 11% VAT portion).
- Accounts are tagged **VAT** vs **NVT (non-VAT)** by the last digit of the account number (`…1` = VAT, `…0` = NVT). A single invoice can mix VAT and non-VAT lines, which is why each sales line has both a VAT and an NVT account.
- Invoice types define a **VAT account** and a separate **Non-VAT account** used when posting to the journal.
- **TCC** is a Lebanese tax-document type (alongside "VAT" and "No VAT") selectable at invoice level.

## Article 59
"Article 59" accounts (e.g. `711400 Local Sales Article 59`) refer to **Lebanese VAT Law Article 59** — a special/exempt or zero-rated treatment. The system tracks these sales **separately on purpose** for VAT reporting. Treat Article-59 sales as a distinct category; do not merge them into standard VATable sales.

> CONFIRM with the user before relying on the exact Article-59 treatment (exempt vs zero-rated) in formal VAT reporting.

## VAT position vs VAT paid (settlement)
- **Position** = output VAT (4427, collected on sales) − input VAT (4421, paid on purchases) = net VAT payable/refundable. `vat_summary` reports this.
- **Paid?** VAT is only *accrued* by invoices (SA/PU/…). It's *settled* when a Payment/Receipt voucher (PV/RV) or settlement JV clears the 442 accounts and cash goes to the authority. `vat_summary` returns `appears_settled` + `settlement_status`: if there's little/no PV-RV cash activity on the 442 accounts and the VAT still sits accrued, **VAT was NOT paid to the state** (or it was filed/paid outside the system — confirm with the accountant).
- There is **no dedicated "VAT due to MOF/Treasury" account** in this chart; `Mof#…` in names are *customers'* tax-registration numbers, not the authority.