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.

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