- VAT in Israel will increase from 17% to 18% starting January 1
- The Tax Authority has released guidelines for implementing the new VAT rate
- The new rate applies to taxable events occurring after December 31, 2024
- This change affects both individuals who cannot recover VAT and businesses that must apply the correct VAT rate
- For goods, the taxable event is usually the delivery date
- In specific cases, the taxable event is when payment is received, applicable for 1. Sellers with annual sales up to NIS 2 million 2. Manufacturers with sales between NIS 2,150,000 and NIS 3,800,000 3. Manufacturers with sales under NIS 2,150,000 and 6-17 employees
- Private consumers may not know a seller’s sales or staff details but can secure the lower rate by completing transactions before 2025
Source: jpost.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
