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
Latest Posts in "Israel"
- Israel Expands Mandatory E-Invoicing: Lower Thresholds and New VAT Compliance Rules for 2026
- Israel Clarifies VAT Invoice Number Requirements and Thresholds for Input Tax Deductions
- Israel Accelerates CTC Invoice Allocation Number Rollout: Lower Thresholds Effective 2026
- Israel Approves 2026 Budget: VAT Stays at 18%, Expands Exemptions, Eases Bank Entry Rules
- Israel Clarifies VAT Invoice Number Requirements and Thresholds for Input Tax Deductions
