Tax & Finance

I rent out a residential apartment in Israel — do I charge VAT?

No. Residential rental is VAT-exempt in Israel. Private landlords renting out apartments to tenants do not charge VAT and do not register for VAT purposes (unless they have other VAT-registerable activities). Note, however, that this means you cannot recover input VAT on related costs (renovation, agent fees).

From the full guide: VAT in Israel: A Guide for Foreigners and Non-Residents


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