Unlike the United States, Israel has a system of value added tax which is identical to the French system. The company collects value added tax (VAT) on its turnover and deducts the VAT paid on its expenses. The current VAT rate in Israel is 17% (as of December 2018). VAT must be paid before the 15th of the following month for companies whose turnover exceeds 1.5 million NIS (or those legally obliged to use double-entry bookkeeping) and once every two months for other companies. Companies with an annual turnover of less than 99,000 NIS (in Hebrew, osek patur<\/em>) are exempt from VAT. Regardless of income, all companies must report their annual income at the end of the year.
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Our law firm often helps companies open a VAT file with the assistance of a local CPA as well as with the electronic declaration and monthly electronic payment.\u00a0 A foreign company must appoint a tax representative for the declaration and payment of VAT in Israel. Our law firm can assist with any of these steps, as needed.<\/span><\/p>\n