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Israel concedes reduced VAT rate

  • VAT
  • 14 November 2015 | Richard Asquith

Israel concedes reduced VAT rate

The ruling Israeli government has agreed to zero rate VAT on public transport and key basic foods to secure agreement on the latest budget.

The concessions were demanded by the government’s coalition partners, including Shas, last week to secure the passage of the latest bi-annual budget. Failure to pass the final budget would result in the collapse of the government.

The food now enjoying the zero-rating includes milk and bread. Public transport is currently subject to 17% VAT. The new measures will come into effect from 1 January 2016.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.