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25th Knesset · outgoing

Value Added Tax Law (Amendment – Tax Exemption on Tips) Bill

Translated from Hebrew: הצעת חוק מס ערך מוסף (תיקון - פטור ממס על תשר)

TL;DRA proposal to exempt service charges in restaurants from value added tax, when the service is provided by the business owner's employee.

Translated from Hebrew

What does the bill do?

The proposal adds a VAT exemption for service charges that a business owner in a restaurant receives for service provided by their employee. The change is made in Section 7 of the Value Added Tax Law (5736) and by adding Section 23(6) to the law. The rationale states that the increase in the VAT rate and the taxation of service charges threatens the existence of many businesses in the restaurant industry, which is in an economic crisis.

Passed preliminary readingFirst plenum vote: November 20, 2024

The votes on this bill

Passed40 for · 0 against · 1 abstained · 79 did not vote
Source: the Knesset's vote record ↗

Coalition 68 seats

LikudFor 14 · Absent 18
ShasFor 7 · Absent 4
United Torah JudaismFor 1 · Absent 6
Religious ZionismFor 1 · Absent 6
Otzma YehuditFor 2 · Absent 4
NoamAbsent 1

Left the coalition 8 seats

Opposition 44 seats

Yesh AtidFor 4 · Abstained 1 · Absent 19
Yisrael BeytenuFor 4 · Absent 2
Ra'amFor 5
Hadash–Ta'alFor 2 · Absent 3
LaborAbsent 4

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.