Foreign companies operating in Israel are required to appoint a local VAT representative to handle their tax obligations. The VAT representative is personally liable for the accurate reporting and payment of VAT on behalf of the foreign entity. This includes registering for VAT, filing reports, and communicating with the Israeli Tax Authority. To mitigate risk, it is common to provide financial guarantees and maintain liability insurance. At AccountX, we offer comprehensive VAT representation services, ensuring full compliance with Israeli regulations while supporting your business operations smoothly and securely.
Role of the VAT Representative
Acts as legal liaison with the Tax Authority and ensures accurate VAT reporting and payments.
Personal Liability of the Representative
The representative is personally liable for the company’s VAT debts and compliance.
VAT Registration and Reporting
Includes VAT number registration, monthly/bi-monthly reporting, and ongoing tax compliance.
When Is VAT Representation Mandatory?
Required when a foreign company operates in Israel without a permanent establishment.
Handling Communication with Tax Authorities
The representative manages all correspondence, queries, and audits on behalf of the foreign entity.
Full financial services for international businesses in Israel.
At AccountX, we provide bookkeeping, payroll, and international and local tax planning services. We serve as a one-stop shop for all your company’s financial management needs.
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