Israel is extending the deadline for VAT returns due in September. Taxpayers submitting bimonthly July-August returns, or monthly August returns, would normally have to submit their VAT returns in September. The Israel Tax Authority has extended the deadline until 5 October 2021.
Authorities implemented the extension owing to the holidays taking place in the period.
VAT filing deadlines extended previously
Extending VAT returns deadlines is not unprecedented in Israel. For instance, at the start of 2021, VAT deadlines were extended owing to the disruption caused by Covid.
Israel’s standard VAT rate is 17%.
Israel plans digital services VAT
Israel VAT watchers should note another recent official announcement. The finance ministry says that digital services VAT for foreign companies is on the cards. The new VAT will apply to digital services companies based outside of Israel that supply services to customers in the country.
Note, however, that Israeli digital services VAT is unlikely to come into effect before 2022.
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