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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 a tip from value added tax when given voluntarily to an employee for service.

Translated from Hebrew

What does the bill do?

The proposal amends the Value Added Tax Law to clarify that a tip paid voluntarily to an employee for service they provided is not considered income of the business for the purpose of calculating VAT, provided that the tip is not included in the bill issued by the business and is not incorporated in the means of payment. The amendment applies to services in businesses such as restaurants, cafes, pubs, hotels and event halls. The proposal aims to bring legal clarity and to prevent disputes between waiters and tax bodies regarding the status of tips.

Passed preliminary readingFirst plenum vote: November 20, 2024
Initiated by: coalitionRead the full text (bill for preliminary reading) ↗

The votes on this bill

Passed38 for · 0 against · 3 abstained · 79 did not vote
Source: the Knesset's vote record ↗

Coalition 68 seats

LikudFor 15 · Absent 17
ShasFor 7 · Absent 4
United Torah JudaismFor 1 · Absent 6
Religious ZionismFor 1 · Absent 6
Otzma YehuditFor 2 · Absent 4
New Hope – The United RightFor 1 · Absent 3
NoamAbsent 1

Left the coalition 8 seats

Blue and White – National UnityAbsent 8

Opposition 44 seats

Yesh AtidFor 1 · Abstained 3 · Absent 20
Yisrael BeytenuFor 4 · Absent 2
Ra'amFor 4 · Absent 1
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.
Value Added Tax Law (Amendment – Tax Exemption on Tips) BillNovember 20, 2024