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 2018
- 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:
- Taxable persons with annual turnover below ILS1.5 million
- General rule
- 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.
Israel Tax Sources & Citations
- EN: Israel Value Added Tax
- RU: НДС
- CN: 增值税
- Israel Israel Tax Authority (ITA) Department of Customs and VAT (http://ozar.mof.gov.il/ita2013/eng/mainpage.htm)
- Ernst & Young global VAT tax study, Israel (updated 2018)
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