Vat

The classification is determined by turnover, and profit remains outside the calculation. With private clients, the exempt status leaves more in the pocket, while with businesses, the licensed status allows for input tax recovery.

Roi Cohen, President of the Chamber of Independent Businesses (LAHAV): "This is an action that tramples on businesses in Israel and will plunge many into a liquidity crisis." He appealed to the Minister of Finance and the Director of the Tax Authority to stop the reform immediately.

Sephora starts selling in Israel, a historic house requiring half a million to relocate, a VAT payment revolution, market fluctuations for defense companies, and private kindergartens for high-tech employees — the most read articles of the week.

The reform promoted by the Tax Authority is intended to fight fictitious invoices by collecting VAT in real-time, instead of the periodic reporting practiced today. The Institute of Certified Public Accountants warns of damage to the cash flow of small businesses and the passing of costs onto consumers. At the same time, the question arises as to how input VAT offsetting will be carried out and...

Most of the debts of a convicted tax offender, including one million shekels in VAT, are not dischargeable. The Jerusalem Magistrate's Court ruled that continuing insolvency proceedings in these circumstances is futile.

The Israel Tax Authority is promoting a new plan, "Israel Invoice 2.0 - VAT Online," aimed at shifting VAT reporting and payment to a real-time digital infrastructure. The reform seeks to reduce tax fraud and streamline business operations.

The entrepreneur and social activist launches a frontal attack against the Tax Authority's new VAT reform, claiming that the new digital mechanism will not stop criminals but will specifically harm law-abiding businesses.

The Tax Authority is promoting a smart system where businesses will transfer VAT to the state at the moment of payment, aiming to reduce bureaucracy and combat fictitious invoices. The move is expected to inject billions into public coffers. Meanwhile, the Treasury warns that VAT may rise to 19% in 2027.

Economic Committee Chairman MK David Bitan claimed that in developed countries, VAT on food does not exceed 8%. The reality is much less clear-cut. Globes' Whistleblower.

A Be'er Sheva-based company owner is accused of deducting fictitious invoices, resulting in a VAT evasion of approximately 12 million shekels. The Customs and VAT legal department has notified the court of its intent to seek an actual prison sentence.

Tax offenses under aggravating circumstances in the construction industry: A company owner is accused of fictitiously increasing expenses to evade taxes. The indictment reveals that between 2019 and 2022, the defendants deducted input tax for transactions that were never performed.

The Tax Authority and the Ministry of Finance are preparing to expand the 'Israel Invoices' reform, planning to mandate allocation numbers for all transactions, regardless of amount, to combat fictitious invoicing.

The Magistrate's Court in Ramle has sentenced contractor Ismail Adjo to 22 months in prison and a 90,000 NIS fine for VAT offenses. The total damage to the state, amounting to approximately 1.8 million NIS, remains unrecovered.