Israel VAT display and additional charges

Updated 9 months ago | 4 min read time
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From 27 June 2023 the Israeli VAT will be included in the final price for all customers with Israeli IP – with the single exception of properties in the Eilat region. In addition, all additional charges such as cleaning fees will also be added to the total price display. Find out what’s changing and what’s required of you.


What’s in this article


General information and upcoming changes

Starting from 27 June 2023, the 17% VAT will be added to the total price of your reservation for non-tourist domestic travellers browsing from Israel as per Israeli VAT law. This change comes following an agreement reached in March 2023 with the Israeli Consumer Protection Authority (CPA) on how to display prices to consumers booking properties in Israel.

This changes includes the following types of reservations:

  • Payments by Booking.com – In which case Booking.com will collect room rate, VAT and any other fees if applicable. The price breakdown will be as follows: room rate + VAT + other taxes and fees.
  • Pay at the Property – In which case you’ll be responsible for collecting the right amounts.

In both cases determining whether the 17% VAT applies to the traveller and remitting the VAT to tax authorities still remains your responsibility. Booking.com will merely include the VAT in the total price and collect the amount on your behalf in case of Payments by Booking.com. 


What you need to do

The VAT will be automatically updated in the extranet, so the change won’t require any action from you. You can read more about review tax set-ups here. If you’re exempt from VAT please contact us.


FAQs

  • The extranet set-up for partners, listed on Booking.com in Israel –with the exception of Eilat – will be updated and VAT 17% will be calculated on reservations from domestic travellers travelling from Israel. Partners will still need to remit the VAT to the Israeli tax authorities.

  • Starting from 27 June 2023, the 17% VAT will be added to the total price of your reservation for domestic travellers browsing from Israel.

  • Any questions should be directed to your local tax adviser or authority, as we do not provide advice on this.

  • There is no change regarding this. Determining whether a traveller is a tourist or not for VAT law purposes remains your responsibility upon their arrival. You can easily check this by the visa the guest will have in their passport, which mentions whether or not they’re a tourist.

  • If the guest booked excluding the tax please contact the guest and collect it. In case of any issues please contact us for further support.

  • For more information, please visit this governmental page about tourist VAT and this page regarding the domestic VAT.

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