VAT
The periodic VAT report, how often to file, deducting input VAT, VAT refunds, and zero-rated VAT on services to clients abroad.
VAT concerns an osek murshe and a company, not an osek patur. The periodic report sets the VAT collected from customers against the VAT paid to suppliers, and the difference is what you pay the Authority or claim back from it. How often you report follows from turnover and can be monthly or every two months. Deducting input VAT needs a tax invoice in the business name, and not every expense allows a full deduction. A service supplied to a customer abroad can be a zero-rated transaction, which is not an exemption: the transaction is reported and the right to deduct input VAT survives.
Two mistakes repeat. The first is skipping a period with no activity: an empty period still has to be reported, and not filing is recorded as late rather than as zero. The second is claiming input VAT off a receipt instead of a tax invoice. A receipt proves the money was paid and carries no deduction right, which is why it is worth asking a supplier for the tax invoice at the time rather than at the end of the period, when it is already hard to get.
- VAT
Osek patur annual declaration - not a VAT report
An osek patur files no VAT report. What they do file is a declaration of turnover by 31 January, separate from the annual income tax return.
- VAT
When a VAT refund arrives and why it gets checked
When a VAT report comes out as a refund, who can claim excess input tax, why a large refund is inspected before payment, and what to do when the money is late.
- VAT
Zero-rated VAT on work for foreign clients
When a service to a foreign resident is zero-rated for Israeli VAT, who counts as one, and what cancels the benefit.
- VAT
Input VAT, who can deduct and what gets lost
What input VAT is, the four conditions for deducting it, the six-month window, mixed inputs and vehicles, and why VAT and income tax differ.
- VAT
The periodic VAT report - filling it out and filing
A guide to the periodic VAT report for licensed dealers - output VAT versus input VAT, filing deadlines, and late filing.