Israel
Confirmed 1% VAT raise from 2025
The Finance Committee of the Knesset has given the green light for the 1% raise of the Vule Added Tax (VAT), from the current 17% to 18%. This change will take effect as of January 1, 2025.
It is the first adjustment to the VAT rate since 2015, when it was reduced from 18% to 17% on the initiative of Moshe Kahlon, the former Minister of Finance. With the new rate in 2025, the government hopes to stimulate economic growth and generate additional revenue of NIS 7.2 billion.
Schedule a Free Consultation
Let us show you how we can support your business to send 100% compliant e-invoices in 54 countries. Please provide your details and one of our team will be in touch.
