Israeli VAT rate not to be cut to 15.5% in 2011

13 December 2010

The standard VAT rate in Israel will remain at 16% in 2011, and will not fall to 15.5% as planned until at least 2013.  The Knesset Finance Committee advised that the rate will return to 15.5% in 2013. 

VAT was increased in July 2009 from 15.5% to 16.5% as a temporary measure during the global financial crisis.  In January 2010 it dropped to 16%, and was scheduled to return to 15.5% at the start of 2011.

Click here if you would like to receive our FREE VAT updates