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25th Knesset · outgoing

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.

Rejected at preliminary readingFirst plenum vote: June 7, 2023

The votes on this bill

Rejected40 for · 50 against · 0 abstained · 30 did not vote
Source: the Knesset's vote record ↗

Coalition 64 seats

LikudAgainst 25 · Absent 7
ShasAgainst 10 · Absent 1
United Torah JudaismAgainst 5 · Absent 2
Religious ZionismAgainst 5 · Absent 2
Otzma YehuditAgainst 4 · Absent 2
NoamAgainst 1

Opposition 56 seats

Yesh AtidFor 22 · Absent 2
Yisrael BeytenuFor 5 · Absent 1
Ra'amFor 2 · Absent 3
Hadash–Ta'alFor 4 · Absent 1
LaborFor 1 · Absent 3

Tap an MK for detailsChanged position between readingsOnly MKs who held a seat on the day of the vote are shown

Other bills with a similar name · 1Separate bills (usually different amendments to the same law) - not readings of this bill.