2023/24 Budget to include VAT collections obligations for non-resident service providers

March 2, 20230

Type: Legislation

A plan to extend Israeli VAT collection responsibilities to international providers and digital platforms for digital or electronic services is part of the budget the Israeli government is developing for 2023–2024.

‘To enable efficient collection of the applicable tax on the acquisition of digital services from overseas providers whose seat is not in Israel’ may be one of the ideas in the draft. This was first suggested in 2016 and has subsequently appeared in numerous budgets. It would adhere to other global VAT digital services rollouts. Israel currently has a 17% VAT rate. 

The digital service platforms that would be liable to Israeli VAT, considering the original 2016 plan, include:

  • Telecoms – data and voice
  • TV and radio broadcasts
  • Digital services (media; gamming; webcasts; e-learning; apps; e-books; software etc)

Effective date: 2023/04


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