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.
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 http://localhost:3000/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('http://localhost:3000/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: