VAT

A recent Israeli court ruling offers a costly lesson for property investors: recovering VAT when buying a property can create a much larger VAT bill when plans change.

Two smugglers who smuggled goods through Ben-Gurion Airport received heavy fines, a suspended sentence, and a criminal record after they appealed an administrative fine.

The offers include an effective 15.25% discount on the Proxis and Ecodiver collections, 25% off selected women’s bags and a complimentary smart luggage tag.

In a panel led by Gal Greenberg of KPMG Israel, VAT Director David Shilon revealed that the Tax Authority considered expanding VAT rules under a legislative amendment to cover additional sectors.

The Tax Authority warns that the move will entail a revenue loss of NIS 8.5 billion per year, which would be funded by cuts or an increased deficit.

Just a few months before the elections, the housing minister who voted in favor of raising the VAT proposes lowering it to 17%. The Finance Ministry clarifies that the proposals will not be adopted.

A joint investigation by Israeli police and the Tax Authority led to the seizure of millions in cash and assets at a Kafr Kara concrete factory linked to a major money laundering ring.

According police, income from cash sales at the store, which was concealed from the tax authorities, was laundered through the suspect's bank accounts by depositing the cash into an ATM at the store

Protesters also warned of the economic implications of the move for local commerce, employment, and business stability in Israel, saying that the move “will be remembered in infamy."

Inputs for employees are defined as assets or services, such as meals, housing, gifts, or entertainment intended for the enjoyment, use, welfare, or benefit of employees or their family.