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.
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