Israel COVID-19 VAT rate cut

Israel’s head of National Economic Council, which advises the head of state on economic issues, has recommended a temporary Value Added Tax cut from 17% to 12%.  This would help support businesses struggling during the coronavirus pandemic, and to boost flat consumer spending. 

This could follow the example of Germany’s VAT cut from 19% to 16% until the end of this year. Early economic data has suggested this had helped to an extent with the easing of the lockdown.

The Finance Ministry has already responded, opposing the move.

Follow Avalara’s live  global coronavirus Covid-19 VAT measures tracker.