VAT
This category should begin with a fuller overview of VAT in Israel rather than a short label and a grid of links.
VAT Basics
Value Added Tax (VAT, or מע"מ) is charged on most goods and services in Israel at the standard rate of 17%. This section explains how VAT works, who must charge it, the difference between a licensed dealer (עוסק מורשה) and exempt dealer (עוסק פטור), and how input VAT offsets output VAT.
5 articlesVAT Registration
Every business in Israel must register for VAT purposes, either as a licensed dealer (עוסק מורשה) or an exempt dealer (עוסק פטור). Find out the registration thresholds, required documents, how to register online or at your local VAT office, and when it makes sense to voluntarily register as a licensed dealer.
5 articlesVAT Returns
Licensed dealers in Israel must file periodic VAT returns — monthly or bimonthly depending on turnover. Learn about filing deadlines, how to report sales and purchases, paying or claiming VAT refunds, online filing through the Tax Authority portal, and penalties for late or incorrect returns.
5 articlesExempt Transactions
Certain transactions in Israel are exempt from VAT or zero-rated. These include financial services, residential rentals, certain medical services, exports, and sales to the Palestinian Authority. Understand which transactions qualify, the difference between exempt and zero-rated, and how exempt status affects input VAT recovery.
5 articlesVAT on Real Estate
VAT on real estate transactions in Israel has special rules. Sales of new residential apartments by contractors are subject to VAT, while sales between private individuals are generally exempt. Learn about VAT on commercial property, construction services, the interaction between VAT and purchase tax, and special provisions for first-time buyers.
5 articlesVAT Compliance
Staying VAT-compliant requires proper invoicing, record-keeping, and timely reporting. This section covers the rules for issuing tax invoices, maintaining purchase and sales records, handling VAT audits, common compliance mistakes to avoid, and the penalties for non-compliance.
5 articlesVAT by Sector
Different business sectors in Israel face unique VAT challenges. This section addresses sector-specific VAT rules for tourism, agriculture, financial institutions, non-profit organizations, and the construction industry — including special exemptions, reduced rates, and reporting requirements unique to each sector.
5 articlesSpecial VAT Topics
Israel imposes special VAT rules on certain types of transactions and goods. This section covers VAT on digital services, e-commerce, imports and customs duties, government and municipal transactions, second-hand goods, and other unique situations where standard VAT rules do not apply.
5 articlesInternational VAT
International transactions raise unique VAT questions in Israel. Learn about VAT on exports and imports, the place-of-supply rules for cross-border services, zero-rating for foreign residents, VAT refunds for tourists, and how Israel's VAT interacts with VAT/GST systems in other countries.
5 articlesEilat Zone
The city of Eilat enjoys a unique VAT-free zone status in Israel. Most goods and services purchased and consumed in Eilat are exempt from VAT. Learn about the geographic boundaries of the zone, which transactions qualify for the exemption, rules for goods leaving Eilat, and implications for businesses operating in the area.
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