Israel VAT bill on foreign digital services
The Israeli Tax Authority has issued its draft bill to tax foreign providers of digital services to consumers with 17% VAT.
The new proposal will seek to tax income on services to Israeli consumers including:
- streaming or downloads of music, films and games;
- digital newspapers or journals;
- online telephony;
- SaaS-based software services;
- internet access
- online ad’s
- membership fees for online sites;
- telephony services; and
- broadcast of TV or radio content.