Israel introduced its value‑added tax (VAT) — locally known as Ma’am — in 1976, as part of a modern indirect tax regime. VAT in Israel is administered by the Israel Tax Authority (ITA), including its Department of Customs and VAT.
Businesses selling taxable goods or providing taxable services in Israel — including imports — must comply with local VAT requirements. That generally means VAT registration, issuing valid VAT invoices, charging VAT on sales (output VAT), claiming VAT on purchases (input VAT), and filing periodic VAT returns.
