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Israel exempts restaurant tips from VAT in landmark decision

The Israel Tax Authority has confirmed that tips given to service staff in restaurants are exempt from Value Added Tax (VAT) following lobbying efforts from industry organizations and lawmakers. The decision to enforce VAT on tips from June 1, 2025, was successfully reversed after a joint effort by the Institute of Tax Consultants and the Israeli Restaurants and Bars Association.

Original article source: https://www.jpost.com/business-and-innovation/article-853047
Source Id: 8668070077

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