Israeli VAT registration
What is the Israeli registration threshold?
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.
Applying for Israeli VAT registration
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.
VAT number format
Once VAT registered, businesses will receive a unique VAT number, to be added to all tax invoices.
Israeli Number Format
|Notes||For incorporated businesses, the first digit is a 5|
Upon receiving a VAT number, businesses must charge, report and pay VAT levied on their taxable supplies.
Latest Israeli news
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...
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...
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,...