Israeli VAT registration

There is a VAT registration threshold for foreign companies providing taxable goods or services in Israel. This is currently set at an annual turnover of NIS 93,003 – calculated on a calendar basis.

Foreign businesses surpassing this limit should register immediately, and appoint a local VAT agent. This party is jointly and severally liable for the tax payer’s VAT reporting and payments – similar to a Fiscal Representative in Europe.

Non-resident businesses may not apply or group VAT registrations.

VAT number applications may be applied for in paper-form only. An application must be submitted within 30 days of exceeding the registration threshold. Failure to do so will result in a fine of 1% of missing VAT plus interest.

Documents required for foreign companies include:

• Completed application
• Appointment form for the local VAT agent
• Registration with the local Register of Companies for the purposes of trading in Israel
• Articles of Association and Memorandum of Association
• Certificate of Incorporation
• Details of company Directors, plus copies of passports

Businesses may deregister if they fall below the annual registration threshold.

Once VAT registered, businesses will receive a unique VAT number, to be added to all tax invoices.

Upon receiving a VAT number, businesses must charge, report and pay VAT levied on their taxable supplies.