Israel VAT Cross-Border Services Calculator 2026
Israeli VAT (Maam) rate is 18% in 2026 (raised from 17%). Cross-border services to/from Israel face reverse charge for B2B and registration thresholds for B2C. This tool computes VAT liability for various transaction types.
Israel 2026 VAT Rate Change
Israeli Maam VAT rate raised to 18% from 17% effective 2026 per Finance Bill 2025. Applies to most goods and services. Exceptions: 0% for exports, basic food items, residential rentals. Highest rate in OECD for general consumption tax outside Nordic countries.
Reverse Charge for B2B Imports
Section 21A of VAT Law: Israeli business buyer of foreign services self-assesses VAT (reverse charge) instead of foreign provider registering. Buyer reports both output and input VAT on same return — cash-neutral for fully-taxable buyers. Provides Israeli tax authority visibility without foreign registration burden.
Digital Services and Foreign Provider Registration
B2C cross-border digital services (streaming, software, e-books, online courses): foreign providers must register with Israeli Tax Authority if Israeli revenue exceeds NIS 100,000 annually. EU OSS-style regime in effect from 2026 — single registration covers all Israeli B2C sales.
Source: Israel Tax Authority VAT Law Section 21A, Finance Bill 2025. Last updated: May 2026.