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Israel raises VAT rate 1% to 17% on 1 September 2012


Israel raises VAT rate 1% to 17% on 1 September 2012

The Israeli Parliament has agreed to increase the standard VAT rate from 16% to 17%.  The new rate will be effective from 1 September 2012.

This increase follows a rise three years ago from 15.5% to 16%.  At the time, this increase was only intended to be temporary.  However, the decline in export markets, especially the key Euro zone, meant this reversal was put off at the start of 2011.

In addition to the new VAT rise, there will also be an increases in individual income tax and a new top rate corporation tax rate.


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.