The decrease in the rate of VAT (from 18% to 17%) is coming into effect on 1 October 2015. Prices need to be updated at that time. How does this affect a business’ reporting requirements? With regards to expenses, ensure that you take the VAT as shown on the tax invoice (חשבונית מס) – there are some situations whereby a single invoice will have both the lower and higher rates of VAT charged. The most likely examples are your electric and telephone bills. Onto income reporting. For those businesses reporting on a monthly basis, nothing really changes as your income for the month of

Three stories of interest from the last few days: (1) The threshold above which you can no longer remain an osek patur (see here) magically increased to NIS 100,000. And according to the tax authority website, this came into effect as of 1st January 2014! Needless to say that this has caught everyone by surpise; not least those who “upgraded” to osek morshe when their income went over the 80k limit. At this stage, there is no official word from the authorities about what to do in such a situation, but I would doubt that they would allow someone to revert to osek

At the very last minute, the tax authority announced today that they are extending the deadlines for the short or anonymous disclosures within the Voluntary Disclosure scheme. You can read more here. At present, the revised deadline has yet to be announced, although my best guess is that it will be until either 30th June 2016 or 31st December 2016 (which is the deadline for the “regular” disclosure route). The announcement also gives the statistics regarding the claims that have been made over the past year, since the scheme was first announced. Over 3,000 claims have been made, “koshering” over NIS 10.3 billion. Of