UPDATE: Israel introduces VAT on the supply of digital services by foreign provider

30 November 2021

From 1 January 2022, the Israeli Government is planning to impose a VAT charge of 17% on the sales of e-services to consumers by non-resident businesses.

At present, non-resident businesses providing digital services in Israel do not have to charge VAT on their sales. However, to remove the unfair advantage given to non-resident companies, the Israeli Government has proposed that VAT at 17% will be applied on these types of transactions.

This follows a proposal from the government back in 2016 and if introduced, the new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals, and internet services.

Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.

We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.

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