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Israel introduces controversial VAT exemption on homes

  • VAT
  • 28 May 2014 | Richard Asquith

Israel introduces controversial VAT exemption on homes

First time buyers of houses are set to be exempt of Israeli VAT in a controversial agreement.

The measure is seen as important to help grow home-ownership in Jerusalem and the new territories, including the West Bank. However, it would only be available to persons who had completed their military services. This means that all Arabs living within the greater Israeli region will not be eligible. There may be some compromise on this last point, with a lower threshold price for non-military service buyers.

There will be caps, including only on purchases of apartments of NIS 16,000 per meter squared.


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.