What is Ma'am?
Ma'am (מע"מ) is Israeli VAT at 17% on most goods and services. As Ossek Mourché or Hevra Ba'am, you collect it for the state and deduct VAT on eligible business purchases.
Ossek Patour does not charge Ma'am while under the annual turnover cap.
Registration
Register through Mas Akhnassa or with your CPA. You receive a separate VAT file number.
Tip: register before importing equipment to recover VAT at customs.
Compliant invoicing
Include: business name, Ma'am number, sequential invoice number, date, net amount, 17% VAT, gross total, and correct invoice type (חשבונית מס).
Mistake: charging VAT before registration — you may have to remit it without full input credit.
Bi-monthly reporting
Most files report every two months:
- Output VAT on sales
- Input VAT on purchases
- Balance due or credit carried forward
Tip: file purchase invoices immediately — missed input VAT is often lost for that period.
Deductible vs blocked
Usually OK: IT, software, office rent, professional travel, subcontractor invoices with Israeli VAT, CPA/legal fees.
Often blocked: personal expenses, meals/gifts (limited), purchases from Patour suppliers (no VAT to reclaim).
Zero rate and exports
Exports and certain sectors may qualify for zero VAT with strict documentation (contracts, foreign payment proof).
Penalties
Late filing, unremitted VAT after collection, and broken invoice numbering trigger interest and audits.
Relation to income tax and Bituach Leumi
VAT is separate from Mas Akhnassa profit tax. Bituach Leumi uses taxable profit, not gross VAT collected.
Monthly checklist
1. Numbered invoices with 17%.
2. Archive supplier VAT invoices.
3. Reconcile bank.
4. Compute balance before deadline.
5. File and pay.
BNG & CO
We handle bi-monthly VAT filings, maximize credits and keep your invoices audit-ready.