Following a 2016 draft bill that has yet to be enacted, it is again proposed to require digital, communications, radio and television non-Israeli service providers to be registered and report for VAT purposes if the recipient is not a VAT dealer, financial institution or a non-profit institution. Furthermore, it is proposed that a sale of low-value tangibles (that are not subject to customs duty, but rather only to VAT) by non-Israeli resident via an online store to such a non-VAT dealer, financial institution or a non-profit institution, will be required to be registered and report for VAT purposes in Israel.
Source: EY
