Israeli Draft Law - Tax on Digital Services

The Israeli Tax Authority hops to amend the VAT Law in such a way that would require nonresident suppliers of digital services to register and account for value added tax in Israel. So far, a draft bill has been submitted by the Israeli Tax Authority that signals the next development in taxation and that will obviously have a dramatic effect on the activities of various big companies such as Google, Facebook and Amazon.

For more details, see: Israeli Tax on Digital Services: Draft Law

Dr. Avi Nov Law Offices, Israeli & international tax law

Dr. Avi Nov, Adv.

 

Israel will tax digital services

The Israeli Tax Authority published on 2 April 2015, a draft circular concerning the taxation of foreign companies providing digital services in Israel through the Internet, such as advertising and website promotion. The draft circular by the Israeli Tax Authority, aims to simplify the taxation of income that arises from the provision of various digital services by foreign companies, such as Google and Facebook, to Israeli residents. The following is a summary of the main provisions in the draft circular by the Israeli Tax Authority. On this issue, see - Israeli Taxation of foreign digital services

Dr. Avi Nov, Adv.

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Israel Tax on Internet Companies

The Israeli High Court of Justice published a decision on 11 March 2014 concerning the application of the tax law to cross border digital delivery of services and products by foreign multinationals operating in the Israeli market such as Facebook and Google. The petition (HCJ case 6845/13) was against the Minister of Finance and the Director of the Israeli Tax Authority. The Israeli High Court rejected that Value Added Tax (VAT) should apply to these companies. See: Israel Taxation of Multinational Companies

See also: Israel Case Law

Dr. Avi Nov, Adv.