Monday April 11, 2016

Israel To Tax Foreign Companies' Online Activities

I don't know what other countries collect when it comes to value added tax but seventeen percent sure seems like a lot. Especially when you consider that the 17% VAT would be on top of the income tax already being collected from these companies.

Israel is to start collecting value added tax (VAT) and income taxes from foreign companies that do substantial business over the Internet in Israel. Under new guidelines issued by the Israel Tax Authority on Monday, foreign companies that operate websites and sell various services such as advertising and brokerage will be subject to 17 percent VAT as well as income tax on their activities in Israel.