VAT Calculator
Add VAT to an amount or extract it from a total, and check how much input VAT you can deduct by expense type. All based on the current VAT rate, 18%.
VAT in Israel is 18% as of January 1, 2025. An exempt dealer (osek patur) does not charge VAT.
How much input VAT can you deduct?
You can't deduct full VAT on every expense. Pick an expense type to see how much is actually allowed.
* Estimate only. Input VAT deduction rules depend on the actual business use and the exact expense type. For mixed expenses (business + personal) the deduction is proportional. Consult an accountant.
How does the VAT calculation work?
- •Adding VAT: amount before VAT × 0.18. On ₪1,000 the VAT is ₪180, and including VAT it comes to ₪1,180.
- •Extracting VAT: total × 0.1525. Out of ₪1,180 the VAT is ₪180, and the net amount is ₪1,000.
- •Input VAT: on cars and fuel you deduct 2/3, on hosting and gifts there is no deduction, and on most of the rest you deduct in full.
Frequently asked questions
What is the VAT rate in Israel in 2025?
VAT in Israel is 18% as of January 1, 2025 (raised from 17%). An exempt dealer (osek patur) does not charge VAT.
How do you extract VAT from a total amount?
Multiply the total by 0.1525 (0.18 divided by 1.18). Out of ₪1,180 the VAT is ₪180.
Can you deduct full VAT on every expense?
No. Cars and fuel — two thirds only, hosting and gifts — no deduction, most of the rest — full deduction.
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