Value-added tax
Israel

Value-added tax (VAT) in Israel, is applied to most goods and services, including imported goods and services. From 1 October 2015 the standard rate was decreased to 17%, from 18%. It had been raised from 16% to 17% on 1 September 2012, and to 18% on 2 June 2013.

Certain items, such as exported goods and the provision of certain services to non-residents are zero-rated. VAT on imported goods is levied on value plus customs duty, purchase tax and other levies.

Multinational companies that provide services to Israel through the Internet, such as Google and Facebook, must pay VAT.
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