VAT Rate Changes from Israel Tax Authority: Gidi Bar Zakai

In recent news, starting on September 1, 2012, the Israeli Tax Authority with Deputy Director Gidi Bar Zakai has said that the standard V.A.T. rate will increase. It will move from its current 16% rate to 17%. Certainly, this rate change is significant for large purchases.

In addition, the government will increase some income tax rates. There will be a new 2% surtax for people who earn over IS 800,000 a year. They will also introduce a new .6% employer tax. While the income tax measures have been thought out by the Israeli Tax Authority with Gidi Bar Zakai, they are still awaiting approval by the Israeli parliament before their scheduled implementation in January of 2013.