Israel VAT rate
Standard rate of Israeli value added tax on a transaction in Israel and on the importation of goods. Under the Value Added Tax Law, 5736-1975, the rate is not fixed in the primary statute: it is 'a single proportion of the price of the transaction or of the goods, as prescribed by the Minister of Finance by order after consultation with the Knesset Finance Committee', so it changes by Ministerial Order (צו מס ערך מוסף (שיעור המס על עסקה ועל יבוא טובין)) ratified by the Finance Committee and approved in the Knesset plenum.
| Current value | 18 percent |
|---|---|
| In force from | 2025-01-01 |
| Official source | Israel Tax Authority, 'היסטורית שיעורי מס ערך מוסף' (VAT rate history database page, updated 26.12.2024): '1.1.25 עלה המע"מ ל-18%'. Instrument: Value Added Tax Order (Tax Rate for Transaction and Import of Goods) (Amendment), 2024, approved by the Knesset Plenum on 12 March 2024 (47 in favour, 29 against) after ratification by the Finance Committee |
| Last verified | 2026-07-24 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
The brief was correct: VAT rose from 17% to 18% with effect from 1 January 2025, as part of the 2024 budget balancing plan. Confirmed twice over from primary sources — the Israel Tax Authority's own rate-history register (gov.il/he/pages/vat-history) and the Knesset's press release of 12 March 2024 announcing plenum approval of the two orders (https://main.knesset.gov.il/EN/News/PressReleases/Pages/press12324w.aspx). A parallel order raised the equivalent rate for non-profit organisations and financial institutions; the ITA's 2026 deductions booklet, chapter ו, confirms the resulting payroll-tax (מס שכר) rates now in force: non-profit institution (מוסד ללא כוונת רווח) 7.5%, financial institution (מוסד כספי) 18%. Transitional rules for the 17%→18% switch are set out in ITA Interpretation Directive 1/2025 (https://www.gov.il/BlobFolder/dynamiccollectorresultitem/represent-info-051224-2/he/vat_represent-info-051224-2.pdf), which turns on the tax-liability date — for a dealer with turnover under ILS 2m the cash basis applies, so amounts received before 31/12/2024 stayed at 17%. Full ITA rate register since the law took effect on 1.7.1976 at 8%: 12% (1.11.77), 15% (1.8.82), 17% (1.6.85), 15% (1.10.85), 16% (1.3.90), 18% (1.1.91), 17% (1.1.93), 18% (15.6.02), 17% (1.3.04), 16.5% (1.9.05), 15.5% (1.7.06), 16.5% (1.7.09), 16% (1.1.10), 17% (1.9.12), 18% (2.6.13), 17% (1.10.15), 18% (1.1.25). A further rise to 19% for 2026 was floated in the 2026 budget discussions but was NOT enacted — 18% remains the rate. ACCESS NOTE: www.gov.il is behind Cloudflare; curl/server-side fetch returns HTTP 403, a JavaScript-capable browser passes. PDFs under gov.il/BlobFolder are blocked the same way.
Earlier values
| From | Value | Source |
|---|---|---|
| 2015-10-01 | 17 | Israel Tax Authority, 'היסטורית שיעורי מס ערך מוסף': '01.10. |
Get it programmatically
curl https://asiaref.dev/v1/il/vat
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://asiaref.dev/v1/il/vat/history?from=2020-01-01
# Provenance: curl https://asiaref.dev/provenance/il/vatOther Israel series: policy interest rate · minimum wage · public holidays · inflation rate (CPI) · corporate tax rate · income tax rates