Looming VAT for Foreigners Said to Cause Cancellations in Israel Tours

Israel Incoming Tour Operators Association says imposing 18% VAT on tour groups would lead to the cancellation of about 6,000 groups involving up to 200,000 foreign visitors, as well as shorter stays by those who do come.

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Foreign tourists visiting Israel don’t currently pay value added tax on their accommodations and other services such as car rentals. The proposed state budget provides for the elimination of the exemption,...