Value Added Tax Law (Amendment – Payment of Tax on the Provision of Manpower Services and Construction Work) Bill
Translated from Hebrew: הצעת חוק מס ערך מוסף (תיקון - תשלום המס במתן שירותי כוח אדם ועבודות בנייה)
TL;DRThe proposal changes the obligation to pay value added tax on manpower, cleaning, guarding and security services, and construction work - so that the liability to pay the tax will fall on the recipient of the service (and not the service provider), if the recipient of the service is a dealer.
Translated from Hebrew
What does the bill do?
The proposal amends the Value Added Tax Law of 1975 in Section 121. Instead of the service provider being liable to pay the tax (as under the laws existing today), the proposal states that the recipient of the service will be liable to pay the tax, if they are a dealer. This applies to the provision of manpower services (including cleaning, guarding and security) and construction work. The explanatory notes state that the amendment is intended to fight the distribution of illegally issued tax invoices in these sectors, which causes a reduction in state revenues.
The votes on this bill
Coalition 64 seats
Opposition 56 seats
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