Fiverr Forum

VAT 18% tax?


#1

It’s the first time i see a tax of 18% in extra when i order something !

is it something new ??


#2

The Terms of Service seems to have been updated to say that those who live in Israel will need to pay tax on purchases here.


#3

It is not understood why ONLY citizens from israel has to pay VAT. it sucks to be an israeli once again Especially when it comes from an israeli based company like fiverr


#4
uriroll said:
  • It is not understood why ONLY citizens from israel has to pay VAT. it sucks to be an israeli once again Especially when it comes from an israeli based company like fiverr







Because it is a legal requirement for a business in Israel to charge people VAT if they are VAT registered. They do not have to charge anybody outside of Israel as there is no need to do so.

#5

If Fiverr were based in another country or region with VAT, they would have to do the same with their own residents, too. These things happen everywhere. I live in a U.S. state which requires tax collection on all online orders (same as what’s happening to you) by companies based in America, even if they’re NOT based in my state.



Old saying: Nothing is certain but death and taxes.


#6

Reply to @ryangillam:

All the Israel “entities” (citizens and businesses) are charged VAT - not only “…VAT registered…”


#7
celticmoon said: I live in a U.S. state which requires tax collection on all online orders (same as what's happening to you) by companies based in America, even if they're NOT based in my state.

As it is currently, only businesses that have a physical presence in a particular state are required to charge tax on citizens of that state. They don't have to be based there. It may change in the not to distant future.

#8

I don’t mind paying th VAT but it is a real problem when you have a credit. Fiver gave me a credit for $5 but I can’t use it since the minimum payment for an Israeli is $5+ 18%VAT and anything over your current credit is pushed directly to Paypal. Since the minimum payment for an Israeli is more than $5, I can never use my $5 credit.

That is terrible design…


#9

But they don’t give VAT invoices! Something smacks of illegality here…


#10

I don’t think this is yet regulated. It is intended to be enacted in the future.

Here from Mar 22,2016

The State will collect VAT for online services offered by foreign companies

The Israeli Tax Authority at the Israeli Ministry of Finance has released a draft bill proposing amendments to the Israeli Value Added Tax (VAT) law such that foreign companies established abroad who provide internet-based services to Israeli customers will be required to pay VAT to the Israeli Tax Authority. The draft bill lists electronic services, communication services, radio and television services, as well as software, entertainment products, books, music, gambling, games, long distance education services and more.

The draft bill further suggests that a non-resident person or entity who provides digital services or operates an online store that offers digital services in Israel will be required to register with the Israeli Tax Authorities. The registration will not list the entity as a “Merchant” under the Israeli VAT law, but rather will be part of a separate designated registry to be determined by the Minister of Finance. The government estimates that the amendment will result in additional revenue amounting to tens of millions of shekels a year.


#11

I don’y know what to write next to the VAT ID NUMBER , in my billing settings , I’m from Israel , but I have never dealt with tax before or have company of my own , please help me what to write next to the VAT ID NUMBER in the billing section.
Thanks.


#12

I’m sorry that I can’t help you, i’m having the same excat problem :crying_cat_face:

_*I’m hoping that by commenting on your post, it will pop-up and someone with the knowldge could help us! _


#13

I’m sorry that I can’t help you, i’m having the same excat problem :crying_cat_face:
*I’m hoping that by commenting on your post, it will pop-up and someone with the knowldge could help us!