Israeli VAT returns

Once registered for value‑added tax (VAT) in Israel, businesses must declare all taxable transactions and remit any VAT due to the Israel Tax Authority (ITA).

How often are Israeli VAT returns required?

VAT‑registered persons in Israel file returns either monthly or bi-monthly (every two months). The frequency depends on their monthly turnover:

Monthly: businesses with annual turnover exceeding NIS 1,725,000
Bi‑monthly: businesses with annual turnover below NIS 1,725,000

Israeli VAT returns deadline

VAT returns must be submitted by the 15th day of the month following the end of the reporting period. Payments of any VAT due should also be made by this deadline.

Israeli VAT ledgers

VAT‑registered businesses must maintain comprehensive VAT records, including invoices, purchase and sales data, and import/export documentation. Returns must reflect these underlying records. Businesses that do not file a return (even if they have nil output) remain subject to record‑keeping obligations.

Israeli VAT payments deadline

VAT payments are due at the same time as the VAT return is due (i.e., by the 15th day following the reporting period). Late payments may incur interest, linkage differentials, and penalties under Israeli VAT law.

What Israeli VAT can be deducted?

Registered businesses may deduct input VAT (the VAT paid on purchases) from output VAT (the VAT collected on sales) provided the input VAT relates to taxable supplies. For example:

Input VAT incurred on goods and services used in the business for taxable sales may be claimed.
VAT on costs relating to exempt supplies generally cannot be reclaimed.
Input VAT must generally be deducted within six months after the invoice or import entry date.

Where are Israeli VAT returns filed?

All VAT returns must be submitted electronically via the ITA’s online portal. Payments must be made through approved banks or payment channels as specified by the authority.

How are Israeli VAT credits recovered?

If input VAT exceeds output VAT for a given period, the business may apply for a refund or carry forward the credit, depending on circumstances and subject to ITA review.

Get help solving your VAT challenges

Other Pages:

Israeli VAT registration

Israeli VAT returns

Israeli VAT rates and compliance

Israeli VAT invoice rules

E‑invoicing in Israel

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