Israel VAT Calculator
Add or remove VAT in seconds. The standard rate in Israel is 18%.
Price including VAT
₪118.00
- Net amount
- ₪100.00
- VAT at 18%
- ₪18.00
- Gross amount
- ₪118.00
Israel VAT rates
| Rate | What it applies to |
|---|---|
| 18% | Standard rate: most goods and services |
Zero rate: exports, services to non-residents, inbound tourism, some fresh fruit and vegetables. Eilat free-trade zone transactions are VAT-free.
How to calculate VAT in Israel
- To add VAT: price before tax × 1.18 = price including tax. For example, 100.00 × 1.18 = 118.00.
- To remove VAT: price including tax ÷ 1.18 = price before tax. For example, 118.00 ÷ 1.18 = 100.00.
- The tax inside a price that includes it: price including tax × 18 ÷ 118. For 118.00 that is 18.00.
Registering for VAT and invoicing
- When to register
- Small businesses under about ILS 120,000 a year can be an exempt dealer (osek patur); the limit is updated each year.
- On your invoices
- B2B invoices above ILS 5,000 (from 1 June 2026; ILS 10,000 from 1 January 2026) need a real-time allocation number from the Tax Authority, or the buyer cannot deduct the VAT.
- Local name
- Ma'am (Value Added Tax)
Recent changes and things to know
Rate rose from 17% to 18% on 1 January 2025.
Israel VAT: frequently asked questions
What is the VAT rate in Israel?
The standard VAT rate in Israel is 18%.
How do I add VAT to a price?
Multiply the price before tax by 1.18. For example, 100 plus 18% VAT is 118.00.
How do I remove VAT from a price?
Divide the price including VAT by 1.18. For example, 118.00 including 18% VAT is 100.00 before tax. Do not just take 18% off the total, because that gives the wrong answer.
When do I have to register for VAT in Israel?
Small businesses under about ILS 120,000 a year can be an exempt dealer (osek patur); the limit is updated each year.
What must a VAT invoice show in Israel?
B2B invoices above ILS 5,000 (from 1 June 2026; ILS 10,000 from 1 January 2026) need a real-time allocation number from the Tax Authority, or the buyer cannot deduct the VAT. You can make one with the free invoice generator.
Is this VAT calculator free?
Yes. It is free, needs no sign-up and runs in your browser, so nothing you type is sent to BunnyDoc.
Sources
Rates checked in October 2026. Tax rates and rules change, and what you charge depends on what you sell and to whom, so check the official sources above or ask an accountant. This page is general information, not tax advice.
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