Updates and Reliefs In Light of the Security Situation – Taxes & Customs and the Legality of imports
15 October 2023
Dear clients and friends,
In light of the current security situation, the Tax Authority has issued guidelines providing the following reliefs in connection with the import of donations. These reliefs relate also to indirect taxes. We note that the Tax Authority is still discussing the provision of further reliefs and additional guidelines will follow accordingly.
Please see below the reliefs provided by the Tax Authority to date:
- Extension for the submission of periodic reports for the month of September 2023 in relation to VAT, deductions, and income tax advances until 10.26.2023. In addition, the Tax Authority will not impose fines for delay in submitting reports until 23 November 2023, but linkage differences and interests will apply according to law. In exceptional cases, it will be possible to submit an individual request with supporting documents for a waiver of interest and linkage differences. Reserve officers and residents of the south near the Gaza Strip (who do not submit their reports for the month of September 2023 on time) will be able to receive a cancellation of the fines for linkage differences and interest (the validity of tax certificates that expired on 30 September 2023 was also extended until 30 November 2023.)
- Freezing of collection and enforcement procedures – the Tax Authority will not impose new foreclosures for debts, nor carry out any enforcement procedures or foreclosures until 20 October 2023. Please note that the linkage and interest differences will apply according to law, existing foreclosures will not be cancelled, and debts will not be written off.
- Submission of extensions for appeals, submission of documents, and management of administrative appeal procedures in all tax systems during the next two weeks – the Tax Authority will be sensitive and flexible in managing existing procedures and the opening of new procedures.
To read the publications of the Tax Authority >> Click here
Release of Donations from Customs
In addition, the Tax Authority published guidelines regarding customs clearance for donations to IDF soldiers, pursuant to which a person interested in donating needs to contact the Ministry of Defense administration. If it is a donation of military equipment, the Ministry of Defense will approve the equipment, submit an import declaration to customs, and transport the goods to the army. Regarding donations that are not military equipment – the Ministry of Defense will approve the equipment and send a request to a special tax committee at the Ministry of Finance. If the committee approves the equipment, the donated entity or its representative must submit an import declaration to customs (however, the tax committee will pay the import taxes). Regarding passengers arriving in Israel with a donation – they must go through the customs’ “red line”, where a representative of the Ministry of Defense will handle the donation.
Civil donations will be handled by customs by a special center established for this purpose.
Administration of the Ministry of Defense: Trumot_migun@mod.gov.il or by phone: 073-3538888.
Customs center: firstname.lastname@example.org or by phone: 074-7409111.
Please click here to read the full guidelines:
Instructions of the Commissioner of Standardization
Please note that all donations are subject to compliance with legal import requirements. In this context, Mr. Igor Doskalovich, Commissioner of Standardization at the Ministry of Economy and Industry, clarified that the import of protective vests (such as ceramic vests) and protective helmets for soldiers (such as tactical helmets) does not require a standard approval.
In addition, the Commissioner of Standardization permitted to import goods intended for military aid, such as audio and video equipment, optical equipment, emergency lamps, plasters and more, without presenting an official standard certificate, starting from October 13, 2023 until December 31, 2023, or until the end of the Minister of Defense’s declaration of a special situation on the home front, whichever comes first. It should be clarified that this exemption does not exempt from the obligation to comply with the requirement of the standard or from any other requirement or instruction according to any law.
To read the notice of the Commissioner of Standardization >> Click here
It should also be noted that in order to make it easier for the public of importers and laboratories, the Commissioner of Standardization published instructions for carrying out identification and taking in the current security situation.
To read the publication of the Commissioner of Standardization >> Click here
We are in continuous contact with the Tax Authority and the Ministry of Economy, who are continuing to consider additional reliefs (for example, VAT exemption on donations, and VAT exemption for dealers on donations).
We will be pleased to be at your service and assist in whatever is required.
Herzog Fox Neeman