IL Value-added tax (VAT) Rates Israel — Value-added tax (VAT)

General VAT Rate Other Rates Local Currency
17% 0% New Shekel (ILS)

Israel's general VAT rate is 17%, with other rates including 0% that can apply to certain transactions. The Value-added tax (VAT) is administered by the Israel Tax Authority (ITA) Department of Customs and VAT (http://ozar.mof.gov.il/ita2013/eng/mainpage.htm) in .

Israel exempts the following from the 17% VAT: fresh food (fruits and vegetables), tourism services for foreign citizens, intellectual property, diamonds, flights and the rental of apartments.

Israel's consumption tax is called the Value-added tax (VAT), locally known as Mass erech mussaf (Ma’am), which was introduced in July 1976.


Israel VAT rates for 2017

Standard
17%
Other
Zero-rated and exempt

Israel VAT number format

Businesses in Israel that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Israel Tax Authority (ITA) Department of Customs and VAT, and will follow a certain format. The VAT number format is XXXXXXXXX.

VAT return period:

Bimonthly
Taxable persons with annual turnover below ILS1.5 million
Monthly
General rule

Threshold:

Registration
Annual turnover of ILS100,000; for lower turnover registration as an “exempted VAT-registered entity” is required

Recovery of VAT by non-established businesses

Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Israel are not required to collect taxes from the consumer.


Israel VAT Refunds

Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Israel VAT refund program, more info can be obtained from the Israel Tax Authority (ITA) Department of Customs and VAT.


IL Value-added tax (VAT) Rates Israel Tax Sources & Citations

  • EN: Israel Value Added Tax
  • RU: НДС
  • CN: 增值税
Note: This page is intended to be a simple overview of Israel's consumption tax structure, is provided as-is, and is not legal advice. Please let us know if any of the Israel tax information on this page is incorrect or out of date.
Citations:
  1. Israel Israel Tax Authority (ITA) Department of Customs and VAT (http://ozar.mof.gov.il/ita2013/eng/mainpage.htm)
  2. Ernst & Young global VAT tax study, Israel (updated 2017)

  3. ← Back to World VAT Rates
** This Document Provided By SalesTaxHandbook **
Source: http://world.salestaxhandbook.com/il-israel