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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