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
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