Israel VAT (Ma'am) 18% Calculator 2027 — Add/Remove VAT

Calculate Israel VAT (Ma'am) at the 18% rate effective from January 1, 2025 onward — both adding VAT to a net price and extracting VAT from a gross price.

Ad Space

18% Rate (Since Jan 2025)

Israel raised VAT from 17% to 18% effective January 1, 2025 to fund war-related budget needs. The rate remains 18% for 2026-2027. Most goods and services are taxable; some fruits, vegetables, and Eilat sales are zero-rated.

Net to Gross Formula

Gross = Net × 1.18. To extract VAT from a gross price: VAT = Gross × 18/118 = Gross × 0.1525. Net = Gross / 1.18 = Gross × 0.8475.

Self-Employed VAT Filing

Atsma'im register as 'osek murshe' (authorized dealer) if turnover exceeds ₪120,000/year. Below that, 'osek patur' (exempt) cannot charge VAT but cannot reclaim input VAT either.

Refund of Input VAT

Registered businesses reclaim VAT paid on business inputs by filing the monthly or bi-monthly VAT report (doh ma'am). Net VAT due = Output VAT (sales) − Input VAT (purchases).

Source: taxes.gov.il VAT bulletin, rate effective Jan 1, 2025. Last updated: May 2026.