VATLive > Blog > VAT > Israel proposes VAT on foreign Internet services - Avalara

Israel proposes VAT on foreign Internet services

  • VAT
  • 03 April 2015 | Richard Asquith

Israel proposes VAT on foreign Internet services

The Israeli tax authorities have issued proposals to subject digital advertising services to Israeli VAT at 17%. Currently, providers with no permanents establishment in Israel are. This will include services provided by Google, YouTube and Facebook

If passed, this will oblige foreign providers to register for Israeli VAT as a non-resident business. The generally requires the appointment of a local fiscal representative to manage the registration and ongoing returns.

In 2014, the Israeli High Court refused a petition to subject foreign companies providing Internet services to consumers to VAT.

In addition to VAT, there may be proposals to compel some of the digital multinationals to pay corporate income tax where they have local staff, but avoid a traditional permanent establish under current double taxation protocols.


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.