Dear clients and friends,

In light of the situation of the businesses in Israel and in order to assist the business sector, which faces cash flow difficulties due to, among other things, the limitations recently imposed by the Government on businesses due to the Covid-19 situation, the Israel Tax Authority granted an extension for the submission of the VAT returns and the payment of the applicable VAT, until January 25th, 2021.

The extension applies with respect to all taxpayers that are required to submit a return, both those who report on a monthly basis and those who report on a bi-monthly basis. Namely, the extension applies with respect to the December 2020 return and the return for the months of November-December 2020, as applicable.

It should be noted that the extension does not apply with respect to income tax advanced payments as well as the tax withholding reporting.

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Our firm has vast experience with respect to the representation vis-à-vis the Israeli VAT authorities. In case of the payment of the monthly VAT causes any difficulties or raises any questions, we recommend contacting us for analyzing, together with the relevant VAT officers to the extent required, whether any reliefs can be obtained.

This circular cannot and should not be construed as a tax advice. Such advice depends on the specific circumstances of each and every case.

Respectfully,

Value Added Tax Department

Herzog Fox Neeman