Israel VAT Rates 2026
Israel (ישראל (Yisra'el)) levies Value Added Tax as מע"מ (Ma'am — Mas Erech Musaf). The standard rate is 18%, applied to most goods and services. Israel applies a single flat rate with no reduced rates.
Israel has no public registry we can query in real time, so a number cannot be confirmed as active from outside. The free VAT number validation tool still checks it against the national format, which catches transcription errors before they reach your accounting system.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 18% | Most goods and services |
| Zero-rated | 0% | Exports, fruit and vegetables, tourism services to foreign tourists, Eilat free-trade zone |
Registration and filing
| Registration threshold | ILS 120,000Below ~₪120,000 a business can operate as an exempt dealer (osek patur) |
| Tax authority | Israel Tax Authority |
| Filing frequency | Monthly returns; bi-monthly for smaller businesses |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/IL endpoint to get Israel data programmatically. Responses are cached for 24 hours.
curl https://www.taxid.dev/api/v1/rates/IL
# No authentication required for rate lookups
# Response:
# { "country_code": "IL", "tax_type": "vat",
# "standard_rate": 18, "reduced_rates": [],
# "currency": "ILS", "last_updated": "2025-01-01" }Fetching the rate in code
// Fetch current Israel VAT rates (no auth required)
const rates = await fetch('https://www.taxid.dev/api/v1/rates/IL').then(r => r.json());
// → { standard_rate: 18, reduced_rates: [],
// currency: 'ILS' }
applyRate(rates.standard_rate);About Israel VAT
Israel raised VAT back to 18% in January 2025 as part of a war-driven budget package, reversing the 2015 cut. Unusually, fresh fruit and vegetables are zero-rated entirely, and the resort city of Eilat is a VAT-free zone under its free-trade-area law. The phased "Israel Invoices" clearance model now requires allocation numbers from the Tax Authority for B2B invoices above a falling threshold — a real-time anti-fraud control inspired by Latin American clearance systems.
VAT in Israel is administered by the Israel Tax Authority.
Sources: PwC Worldwide Tax Summaries · Israel Tax Authority (accessed Jun 2026)
Rate history
- 2015Standard rate cut from 18% to 17%
- 2025Raised back to 18% on 1 January to fund the defence budget
Frequently asked questions
What is the VAT rate in Israel in 2026?
18%, in force since 1 January 2025; fruit, vegetables, exports and Eilat-zone supplies are zero-rated.
Why is there no VAT in Eilat?
Eilat is a designated free-trade zone under a 1985 law, so most goods and services sold there are exempt from VAT to support tourism.
Related concepts and guides: