Israeli VAT

Israel introduced Value Added Tax (VAT) in 1976. It was based, at the time, on the UK’s regime. VAT in Israel is operated by the Israel Tax Authority, and Department of Customs and VAT. The indirect tax regime is largely based on the OECD standard model.

What activities require an Israeli registration?

Non-resident companies providing the following taxable goods or services may have to apply for a VAT registration number:

  • Sales of goods, including assets and real estate, within Israel, or goods exported from the country
  • Sale of services or intangibles within the country
  • Importing goods for onward supply to reclaim the import VAT
  • Organisation of live events and conferences

Most B2B services provided to Israeli businesses do not require a registration for the foreign provider – the reverse charge should be applied instead.

Latest Israeli news

Israel scraps VAT on Bitcoin

December 10, 2017

Israel is considering becoming the latest country to exempt sales of bitcoin and other cryptocurrencies from VAT.  Instead, profits from dealing in the digital currencies...

Israel bi-monthly VAT threshold

September 4, 2017

Israel has lowered for the annual sales threshold for the entitlement to submit bi-monthly VAT returns to ILS 1.49million from  ILS 1.5million.  This new...

Israel levies VAT on bitcoin

January 17, 2017

The Israeli tax office has confirmed that trading in bitcoin is subject to 17% VAT. The announcement confirms that virtual currencies, such as bitcoin,...