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.
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.
Frequently Asked Questions
When did Israel raise VAT to 18%?
January 1, 2025. The previous rate of 17% had been in effect since October 2015. The 1% hike funds war-related budget needs.
What is zero-rated in Israel?
Fresh fruits and vegetables, exports, and most sales in Eilat (free trade zone) are zero-rated. Tourists may also reclaim VAT at airport departure on purchases over ₪400 from a single Tax Free–approved seller.
Do I need to register for VAT?
Self-employed with turnover above ₪120,000/year must register as osek murshe and charge 18% VAT. Below threshold, register as osek patur (no VAT charged, no input reclaim).
How often do I file VAT?
Monthly if annual turnover > ₪1.5M, bi-monthly otherwise. Filing deadline: 15th of the month following the reporting period.
Is my data private?
Yes. All calculations run in your browser. Income, contribution and asset data are never sent, stored, or shared.