# VAT Compliance for Digital Sales in Israel

> Rules for VAT in Israel: rates, thresholds, registration, filing expectations, and Dodo Merchant of Record handling.

- **Jurisdiction**: Israel
- **Tax Type**: VAT
- **Standard Rate**: 17%
- **URL**: https://dodopayments.com/tax/vat-israel

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## How VAT Applies to Digital Goods

The **standard VAT rate** in Israel is **17%**.

Israel applies VAT at 17% on digital services provided to Israeli consumers by non-resident businesses. Since 2016, non-resident providers of digital services must register for Israeli VAT if their annual sales to Israeli customers exceed the threshold. The definition of digital services broadly covers SaaS, cloud computing, digital content, and online advertising.

Israel is not part of the EU, so the OSS scheme does not apply. Non-resident digital sellers must register directly with the Israel Tax Authority and file returns monthly. The registration process requires appointing a local fiscal representative in some cases.

## Registration Requirements

Non-resident digital service providers must register with **Israel Tax Authority (ITA)** using the **Israeli VAT number (9 digits)** format. Registration should be completed before first taxable sales to Israel consumers.

## Filing and Compliance

Israel requires **monthly** VAT filing with Israel Tax Authority (ITA). Maintain complete transaction records, tax calculations, and invoices for audit readiness.

## How Dodo Payments Handles This

As Merchant of Record, Dodo Payments calculates Israel VAT at checkout, collects tax from the customer, generates compliant invoices, and handles remittance -- removing the need for merchants to register or file separately.

## Related Pages

**Section:** [All Tax Guides](https://dodopayments.com/tax)
**See also:** [Israel](https://dodopayments.com/payments-in/israel) | [ILS](https://dodopayments.com/currency/ils)

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