Exempt 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.

  1. Exemption from VAT on renting a residential apartment

    Renting a residential apartment is exempt from VAT

  2. Exemption from VAT on healthcare services

    Health and medical services exempt from VAT

  3. Exemption from VAT on educational services

    Educational institutions and educational services that are exempt from VAT

  4. Exemption from VAT on financial services

    Financial institutions and VAT exemption

  5. Non-profits and VAT

    Non-profit status for VAT purposes