Israeli VAT registration

For resident businesses, VAT registration is required once annual taxable turnover exceeds NIS 120,000, based on the current threshold for exempt dealer status. For non-resident traders, including foreign companies with taxable activity in Israel, registration may be required earlier depending on the nature of the supplies. Foreign businesses should confirm their obligations with the Israel Tax Authority (ITA) or an Israeli tax advisor.

For non-resident digital service providers (without a permanent establishment) selling to Israeli consumers, there is no official low-turnover threshold. In many cases, VAT registration may be required from the first taxable supply. 

Foreign businesses may need to register for VAT in Israel if they engage in the following activities:

• Importing goods into Israel for subsequent supply
• Selling goods or services in Israel to local customers
• Providing electronically supplied services or digital products to Israeli consumers
• Storing goods in Israel for local sale, especially if the business carries out warehousing and onward supplies

Foreign entities must submit the following:

• Completed registration application (Form 22 for foreign traders) via the local tax authority
• Appointment of a local VAT representative (fiscal agent) residing in Israel
• Corporate documents: certificate of incorporation, articles of association, details of directors, and, for foreign companies, power of attorney for the Israeli representative
• Declaration of anticipated taxable activity in Israel, turnover estimates, and details of business operations

After registration, a VAT number is issued as part of the taxpayer’s identification profile. The number consists of 9 digits (e.g., 123456789). For incorporated companies, the number often begins with “5”.

The business must charge, collect, and remit Israeli VAT where applicable. VAT‑registered persons must issue invoices, maintain records, and file periodic VAT returns (monthly or bi‑monthly) under Israel’s VAT law.