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Consumer Info: Israel New VAT Rate from 1st October 2015
By: Binyamin Radomsky, CPA, binyamin@aboulafia.co.il
The decrease in the rate of VAT (from 18% to 17%) is coming into effect on 1 October 2015. Prices need to be updated at that time.
How does this affect a business’ reporting requirements?
With regards to expenses, ensure that you take the VAT as shown on the tax invoice (חשבונית מס) – there are some situations whereby a single invoice will have both the lower and higher rates of VAT charged. The most likely examples are your electric and telephone bills.
Onto income reporting
For those businesses reporting on a monthly basis, nothing really changes as your income for the month of October will all be charged at the lower rate….
