Israel

Israeli VAT invoice rules

January 22nd, 2018

Invoice date of issue and storage of Israeli VAT VAT invoices must be issued within 14 days of a taxable supply, or cash settlement. Israeli VAT invoices should show the following information: Name, including trading name, and address of supplier and customer VAT number of the supplier, and the words ‘Tax Invoice’ and ‘Authorized Entrepreneur’ Date …


Israel

Israeli VAT rates and compliance

January 22nd, 2018

Israeli VAT rates There are two Israeli VAT rates – standard and nil rates. The current rates are: Although VAT exempted, financial service companies and not-for-profit organisations are liable to a wage and profits tax. Israeli VAT compliance As a tax payer, a VAT registered business must comply with the rules and record keeping requirements …


Israel

Israeli VAT returns

January 22nd, 2018

VAT registered traders must file regular returns with the Israeli Tax Authority. How often are Israeli VAT returns required? The VAT return filing frequency depends on the business’ monthly turnover levels: Monthly: monthly turnover above NIS 1,490,000 Bi-monthly: monthly turnover below NIS 1,490,000 What Israeli VAT can be deducted? Tax payers may reduce the VAT …


Israel

Israeli VAT registration

January 22nd, 2018

What is the Israeli registration threshold? There is a VAT registration threshold for foreign companies providing taxable goods or services in Israel. This is currently set at an annual turnover of NIS 93,003 – calculated on a calendar basis. Foreign businesses surpassing this limit should register immediately, and appoint a local VAT agent. This party …


Israel

Israel

January 22nd, 2018

Israel introduced Value Added Tax (VAT) in 1976. It was based, at the time, on the UK’s regime. VAT in Israel is operated by the Israel Tax Authority, and Department of Customs and VAT. The indirect tax regime is largely based on the OECD standard model. What activities require an Israeli registration? Non-resident companies providing …


Israel

Israel scraps VAT on Bitcoin

December 10th, 2017

Israel is considering becoming the latest country to exempt sales of bitcoin and other cryptocurrencies from VAT.  Instead, profits from dealing in the digital currencies will be liable to Capital Gains Tax or Corporate Income Tax. Israel has until now categorised digital currencies as a financial asset, and not a currency, thus making trading liable to indirect …


Israel

Israel bi-monthly VAT threshold

September 4th, 2017

Israel has lowered for the annual sales threshold for the entitlement to submit bi-monthly VAT returns to ILS 1.49million from  ILS 1.5million.  This new threshold will apply from 1 January 2018. Generally, businesses must complete monthly VAT returns when registered for VAT in Israel.  Returns are due on the 15 of the month following the …


Israel

Israel levies VAT on bitcoin

January 17th, 2017

The Israeli tax office has confirmed that trading in bitcoin is subject to 17% VAT. The announcement confirms that virtual currencies, such as bitcoin, are to be regarded as tradable assets and therefore subject to direct (income tax and capital gains tax) and indirect taxes (VAT or GST) on transactions. This compares to the EU, …


Israel

Israel digital VAT update

April 14th, 2016

Israel is continuing with proposals to levy 16% VAT on supplies of digital services to Israeli consumers by foreign providers. The tax authorities issued a new Circular this week outlining plans to make supplies by foreign companies of goods and services via e-commerce taxable.  The Circular makes reference to the Base Erosion Profit Shifting (BEPS) …


Israel

Israel VAT bill on foreign digital services

March 19th, 2016

The Israeli Tax Authority has issued its draft bill to tax foreign providers of digital services to consumers with 17% VAT. The new proposal will seek to tax income on services to Israeli consumers including: Streaming or downloads of music, films and games; E-books; Digital newspapers or journals; Online telephony; Betting; SaaS-based software services; Internet …