Israeli confirms 31 May 2013 1% VAT rise

The government has confirmed an Israeli VAT rise from 17% to 18% from 31 May 2013.  This follows approval in Cabinet.  The Israeli Value Added Tax rise was proposed in April 2013.

The rise follows an Israeli VAT increase from 16% to 17% in September 2012.  There had been a commitment to return the rate to 16%.  However, the worsening Israeli and global economic environment has mean that this has been withdrawn.

Foreign tourists will still be able to recover their VAT on local purchases, despite last minute attempts to remove the allowance.