Zero Vat for Tourist


Zero VAT on Tourism Services Provided to  Tourists Visiting Israel

This information applies only to people entering Israel on a B/2, B/3, B/4 visa or entering according  
 to a special entry permit, such as: diplomats

According to the Israel Value Added Tax Law, a wide range of tourism services provided to tourists (foreign citizen), during their stay in Israel, are subject to zero VAT.

Section 30(a)(8) of the Value Added Tax Law 1975, and  regulations 12(a), 12a(c) and 12b of the Value Added Tax Regulations 1976 – stipulate that a zero tax rate will apply to certain tourism services provided to tourists in Israel; in other words, the VAT payment on such transactions, as aforementioned, is zero.

Services eligible for zero VAT

​Hereunder are the types of services provided to tourists during their stay in Israel, for which the applicable VAT is zero:
1. Overnight hotel accommodations and additional services provided to the tourists, on condition 
    that they are received in the hotel in which the tourist stays overnight.


These additional services are:

• Food and beverage

• Use of the pool and related services

• Laundry service

• TV rental for use in the tourist's hotel room

 • Use of the sauna and related services

 • Use of the telephone, telefax and fax

• Use of sports and health facilities 

 • Translation of documents, composing letters and other office services



2. Rental of a private motor vehicle for self-driving.


3. Transportation for touring, either in a private motor vehicle or by bus (licensed for such purpose). 


4. Meals provided during a bus tour or boat cruise.


5. Transportation of tourists by any type of boat from one part of Israel to another.


6. Transportation of tourists by any type of aircraft from one part of Israel to another.


7. Hospitalization (in hospitals authorized by the Public Health Ordinance).


8. Sale of the right to participate in an international conference, which has at least 50 tourist 


9. Provide a foreign citizen the right to use exhibition space and related services provided by the
    exhibition service provider.



Note: The full rate of VAT (currently 17%) applies to all service which do not qualify as the type of services listed above, provided to tourists in Israel.

Conditions for implementing zero VAT

Zero VAT will apply to services (from the services listed above) subject to the following conditions:

1. The service is provided to a tourist staying in Israel subject to a B/2, B/3, B/4 visa or visiting 
    permit or a person entering Israel according to an order or special permit (diplomats, foreign  
    policy representatives, etc.,).


2. The service provider is in possession of an agreement or other document, which confirms the 
    terms of the transaction (for example, an invitation)


3. The service provider is in possession of the tourist's name, permanent residence and passport 


4. A tax invoice has been issued specifying the service provided to the tourist.


5. Regarding transportation for touring or rental of a private motor vehicle to tourists, the invoice 
    issued will state the car registration number and the driver's name, when applicable.


6. Regarding meals provided on a bus tour, the invoice issued to the transporting bus wills sate the 
    bus registration number.


7. The service provider registered in his accounting records: the price of the transaction (including 
    the mean of payment), the currency in which it was paid.