Israel MOF Seeks Comments on Draft Memorandum to Impose VAT on Digital Services

The Israeli Ministry of Finance Aug. 2 opened a consultation on a draft memorandum to propose the application of VAT on digital services. The draft memorandum includes measures that would: 1) impose VAT on digital services upon the receipt of the sale amount; 2) require nonresident digital service providers to register in Israel for periodic VAT reporting; 3) allow the tax agency to issue notice to nonresident service providers for incorrect digital transaction declarations; 4) impose VAT on supplies between residents using a digital platform even if the service supplied is outside Israel; and 5) define digital services, platforms, and ...