Free trade zones and VAT

Principle

Free Trade Zones in Israel allow storage and processing of goods without payment of VAT until they enter the territory of Israel.

Advantage

Importers can store goods in a free zone and pay VAT only when released to the local market, which improves cash flow.

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.