The Israeli Tax Authority has issued new guidelines to the banking sector on withholding VAT at source on the importation of intangible assets by Israeli customers. Under the guidelines, with retroactive effect as from 1 January 2022, a bank must withhold an amount equal to 17% of the payment to the supplier from all payments for the importation of intangible assets such as digital subscriptions, software as a service (SaaS), and similar items, at the time of payment.
Source Deloitte
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