By Ofir Buium, Paralegal & Amit Acco, Partner |

Under Israeli law, Value added tax (VAT) is imposed on any transaction executed in Israel, including legal service, where the Israeli law is the subject matter of the legal service rendered, even if the client domiciled outside of Israel.

The VAT is a single rate from the sum of the transaction or the price of the goods, as prescribed in a decree issued by the Minister of Finance. Currently (2020) the VAT rate is 17%.

Examples of services that are provided by Kan-Tor & Acco that requires VAT to be added:

–         Legal service to obtain Work Permit or Work Visa for foreign nationals,

–         Legal opinions concerning Israeli law,

–         Special Entry permit to Israel during Covid-19

–         Any immigration Court appeal or petition,

–         Request to stay in Israel beyond 5 years and 3 months for foreign experts,

–         Legal issues emerging from a state of emergency (war, pandemic, or any acts of god),

–         Preparation of documents for customs clearance,

–         Legal representation at the airport,

–         Legal Representation at the offices of the immigration police,

–         Preparation and handling of bank deposits to secure foreign employee departure according to visa terms

–         Labor law-related issues,

–         Assistance in opening a bank account for a foreign national

Nevertheless, it is important to note that According to the Israel Value Added Tax Law, a wide range of tourism services provided to tourists (foreign citizens), during their stay in Israel, are subject to zero VAT.

Under the relevant tax laws, a zero tax rate will apply to certain tourism services provided to tourists in Israel; in other words, the VAT payment on such transactions, as aforementioned, is zero. For more information on zero tax eligibility, please click here.