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

Country Code il
Format 123456789
Characters 9 characters
Notes For incorporated businesses, the first digit is a 5

What next?

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

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