The High Court in Israel has rejected a petition asking the Court to order the Finance Minister and tax authorities to impose VAT on cross border services delivered electronically and on products of foreign companies sold in Israel. The Court determined that the tax authority intends to issue a tax circular on the taxation of digital transactions and that the petition was therefore delivered too soon.
When it is issued the tax circular will be of interest to all businesses involved in the cross border delivery of services or goods to Israel.
