VATLive > Blog > Israel > Israel COVID-19 VAT rate cut

Israel COVID-19 VAT rate cut

  • Sep 9, 2020 | Richard Asquith

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.

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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 can be contacted at: He is part of the European leadership team which won International Tax Review's 2019 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.

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