Definition
VAT (value added tax) is an indirect tax at the rate of 18% imposed on the sale of assets and the provision of services in Israel. The dealer collects VAT from the customer and transfers it to the tax authority, minus the input VAT he paid.
principles
- Indirect tax - the final consumer bears the burden
- The credit method - deduction of input VAT against transaction VAT
- Flat rate 18% (0% on exports)
- Applies to all stages of the production and marketing chain
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.