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Foreign Residents’ B2C VAT Liability with respect to Importation of Digital Services to Israel – Removed from the 2023-2024 Budget Legislation

Iris Weinberger

19 April 2023

Dear friends and clients, Further to our client update from February 26, 2023, we would like to bring to your attention that, in accordance with the Knesset Committee decision of March 30, 2023, the legislation amendment regarding foreign residents’ liability to pay value-added tax for the importation of digital services will not be enacted within the framework of the 2023-2024 budget legislation. We will keep you updated if there is any other development related to the legislation on this matter.  Kind Regards, Tax Department Herzog Fox & Neeman

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