Israel VAT registration threshold
Israel VAT registration threshold is 122833 ILS/year, in force since 1 Jan 2026. Last checked against the official source on 10 Aug 2026.
The turnover at which VAT/GST registration becomes compulsory in Israel, with the period the test runs over, the rule for non-established suppliers, and any separate treatment of imported digital services.
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| Current value | 122833 ILS/year |
|---|---|
| In force from | 2026-01-01 |
| Official source | רשות המסים בישראל — סכומים ושיעורים במע"מ (Israel Tax Authority, VAT amounts and rates): osek patur ceiling ILS 122,833 for 2026; statutory base in Value Added Tax Law 5736-1975 s.1: "עוסק שמחזור העסקאות שלו בכל עסקיו אינו עולה על 120,000 שקלים חדשים לשנה" ('a dealer whose transaction turnover in all his businesses does not exceed NIS 120,000 a year'), CPI-indexed each 1 January. |
| Last verified | 2026-08-10 |
| Verification | secondary — Corroborated, but the primary instrument was NOT read (usually the publishing host blocks automated access). gov.il returns HTTP 403 to non-browser fetchers; the 2026 indexed ceiling was confirmed from search-indexed renderings of the ITA's own pages plus the consolidated statute text, not from a directly-fetched ITA page. The statutory base figure and every section quoted were read from the consolidated Hebrew law text. Re-verification with a real browser session against gov.il would lift this to primary. |
| Provenance | source fingerprint |
What this value means
WHAT IS SERVED: the עוסק פטור (osek patur, 'exempt dealer') turnover ceiling — ILS 122,833 for 2026, up from ILS 120,000 in 2025 — because registration itself carries NO threshold: s.52 makes every dealer, non-profit and financial institution register before commencing business, with no de minimis. The ceiling is not a registration threshold in the EU sense; it selects between osek patur status (no VAT charged on transactions under s.31(3), no input-VAT deduction, no tax invoices) and עוסק מורשה (osek murshe, standard registrant). It is the figure every small supplier actually plans around, so it is served with this label rather than a technically-true-but-useless zero. Standard VAT rate 18% since 2025-01-01 (raised from 17%; ITA interpretative instruction 01/2025). PERIOD BASIS: annual turnover over the CALENDAR year, all businesses of the dealer aggregated; the ceiling re-indexes every 1 January. Crossing it — even by one shekel — obliges immediate notification and conversion to osek murshe from the date of breach. NON-ESTABLISHED SUPPLIERS: no threshold and no exempt-dealer route in practice. A foreign resident doing business in Israel must, under s.60, appoint within 30 days a representative permanently resident in Israel ('ימנה תוך שלושים יום... נציג שמקום מגוריו הקבוע הוא בישראל'); the representative is treated as the person liable for the tax. IMPORTED DIGITAL SERVICES: Israel has NO enacted non-resident digital-VAT regime. The 2023 Ministry of Finance memorandum (and the earlier 2016 bill) to make foreign B2C digital suppliers register and charge VAT was never enacted and remains without legal effect as of August 2026; liability for VAT on imported services rests in principle on the Israeli recipient. Do not import a 'digital VAT registration threshold' for Israel from vendor blogs — none exists in force. Traps: (1) Calling the ceiling a 'registration threshold' is wrong in kind — s.52 registration is unconditional; the ceiling only selects the dealer's status. (2) An osek patur cannot issue tax invoices, so business customers cannot recover input VAT — the status is commercially one-way. (3) Listed professions (lawyers, accountants, physicians, architects, engineers and others under reg. 13 of the VAT (Registration) Regulations) are barred from osek patur status at ANY turnover. (4) The consolidated statute text shows the base figure (120,000); the operative indexed figure lives in the ITA's annual publication — cite both or the numbers appear to disagree. (5) Rate computations citing 17% are stale — 18% since 2025-01-01; a mooted rise to 19% for 2026 was NOT adopted. (6) The 2026 'עסק זעיר' (micro-business) income-tax reform reuses the same 122,833 ceiling for a 30% automatic expense deduction — same number, different tax; do not cross-wire the records.
Get it programmatically
curl https://mearef.dev/v1/il/vat-registration-threshold
# $0.005 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://mearef.dev/v1/il/vat-registration-threshold/history?from=2020-01-01
# Provenance: curl https://mearef.dev/provenance/il/vat-registration-thresholdOther Israel series: Bank of Israel interest rate · VAT standard rate (מס ערך מוסף) · National minimum wage · Public holidays · CPI inflation (year-on-year) · Corporate income tax rate · Withholding tax rates · statutory interest rate · Personal income tax brackets · Statutory social-insurance contributions
The same figure elsewhere: Jordan · Kuwait · Oman · Qatar · Saudi Arabia · all 9