VAT News

Israel VAT bill on foreign digital services

The Israeli Tax Authority has issued its draft bill to tax foreign providers of digital services to consumers with 17% VAT.

The new proposal will seek to tax income on services to Israeli consumers including:

  • streaming or downloads of music, films and games;
  • e-books;
  • digital newspapers or journals;
  • online telephony;
  • betting;
  • SaaS-based software services;
  • internet access
  • online ad’s
  • app’s;
  • membership fees for online sites;
  • telephony services; and
  • broadcast of TV or radio content.

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