VAT מע״מ – the basics
VAT (value added tax) is a tax levied on business transactions, but borne by non-businesses, i.e. it is the private individual who ends up bearing the brunt of the tax.
However, many service providers are allowed to make their tax-point only when payment is received (this means the date the monies hit the bank – not when a post-dated cheque is received). Examples of such professions are accountants, lawyers, translators & medical professionals.
Again, professional advice should be sought prior to commencement of business.