PLANNED VAT REDUCTION IN ISRAEL

Beginning January 2010 Israeli authorities have reduced the VAT to the level of 16%. This is a planned tax reduction, from the previous VAT level of 16.5%.

Last recent VAT change occured on July 1st 2009, when Israeli Finance Minister has declared VAT increase from 15.5% to 16.5% in order to minimize the impact of the international financial crisis on overall tax revenue. At the same time, the minister has scheduled to re-evaluate the situation at the end of 2009 based on year end economical conditions, to correct the VAT level.