The periodic VAT report - how to fill it out, when to file, and what happens if you're late
The periodic VAT report is the recurring filing every licensed dealer and company submits to the Israel Tax Authority, and it’s also what determines the actual VAT payment or refund.
What goes into the report
At its core, the report is a simple equation:
Output VAT − input VAT = VAT payable (or refundable, if the result is negative)
Output VAT is the total VAT you charged customers on tax invoices issued during the period. Input VAT is the total VAT you paid on deductible business expenses (equipment, services, office rent and so on), which can only be deducted by a licensed dealer.
If your input VAT is higher than your output VAT, for example in a month with a large equipment purchase, the Tax Authority owes you a refund.
How often you file
The frequency, monthly or bimonthly, is set by the Tax Authority based on the business’s turnover, and it’s stated on your file-opening confirmation. You can’t choose a frequency on your own; changing it has to go through the Tax Authority directly.
The filing deadline
The report is due by a fixed date each month or every two months (usually the 15th of the month following the reporting period, pushed back around holidays). Filing late triggers a fixed late-payment fine that grows over time, even if there’s no actual VAT owed.
What happens if you forget to file
The filing requirement holds even for a period with no income at all, filed as a “zero” report. The Tax Authority doesn’t close your file automatically, and it keeps expecting regular reports until the file is formally closed.
Making sure the numbers are right before you file
- Every tax invoice issued during the period is included in full, even ones that haven’t been paid yet.
- Expenses marked as deductible for VAT match the rules (some, like car expenses, are only deductible in part).
- No expense has accidentally been recorded twice.
How Slate calculates the VAT report
Slate calculates the VAT report directly from the documents and expenses already entered in the system. The exact same calculation shown on the report screen also powers the AI assistant when you ask something like “how much VAT do I owe this month,” so the two can never disagree.