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5) Certain services rendered to non-residents.
TAXATION
6) Certain services concerned with the arrival/departure of planes and
ships to and from Israel.
7) Services rendered by a dealer whose principal work is in Israel.
8) Hotel services and car rentals to tourists who pay in foreign currency.
9) Sale of goods to people arriving in Israel and are exempt from
purchase tax.
10) Sale of the right to travel from one country to another.
11) Transport of cargo and passengers to and from Israel.
12) Sale of fresh fruit and vegetables.
13) Certain structural alterations.
8.7.3. Payroll Taxes
Financial institutions, mainly banks and insurance companies, pay
15.5% profit tax instead of VAT. Nevertheless, pursuant to a temporary
order, the current VAT rate effective from 1.1.2010 up to 31.12.2012 is
16%.
The 2009 Amendment prescribes that transactions reported to the VAT
authorities must be performed electronically. The reports must cover all
supplier and consumer invoices including a private serial number for
each of the above. The Amendment effective 2010-2012, depends of the
scale of supplier transactions.
Financial institutions approved as non-profit organizations pay 7.5%
payroll tax instead of VAT.
These two types of institutions are not considered VAT dealers, hence
they cannot recover the VAT amount paid to suppliers.
8.8. REAL ESTATE TAXES
8.8.1. Introduction
On March 23, 2002 a comprehensive real estate tax reform was
introduced. The revision went into effect retroactively - from November
7, 2001.
BDO Israel