Israel 2021-22 Budget to Include Measures for VAT on Foreign Digital Service Providers and Measures for Trapped Earnings
Israel’s Ministry of Finance has issued several proposed tax measures as part of the 2021-22 Budget. One of the key proposals is for imposing VAT on foreign digital service providers, which was previously proposed in 2016. As with the previous proposal, foreign suppliers of digital services would be required to register and account for VAT on supplies made to Israeli consumers at the standard VAT rate of 17%. The requirements would also apply for foreign communications, radio, and television service providers. In addition to foreign service providers, VAT requirements would also apply for supplies of low-value goods by foreign suppliers to Israeli consumers via online stores.
Source Orbitax
Latest Posts in "Israel"
- Israel Investigates Major Tax Fraud in Alibaba, AliExpress Imports by Tim International Transport
- Israel Accelerates CTC Invoice Allocation Number Timeline to Combat Fraudulent Invoices by 2026
- Israel Invoicing Model to Combat Fictitious VAT Claims, Thresholds for allocation numbers are NIS 20,000 in 2025, NIS 10,000 from 1 January 2026, and NIS 5,000 from 1 June 2026
- E-Invoicing in the Middle East: The Digital Tax Transformation Businesses Can’t Ignore
- Electronic Invoicing in Israel: CTC clearance model
