Hocus Focus Films, Israel, specializing in providing comprehensive production services for foreign production companies filming & shooting documentaries, fiction films, TV dramas, still photography and TV commercials in Israel.

TAX LAW : Getting V.A.T reimbursed

CORPORATE TAXES
A foreign company working in Israel on a temporary basis, for example for the duration of a production, is not taxable inasmuch as it has no stable base in Israel.

VALUE ADDED TAXES ( V.A.T. )
Under the Israeli V.A.T. system, Israel charges value added tax (currently 18%) on the sale and supply of goods and services.
The tax paid by Israeli companies on the expenses may be offset against the tax on the sales, except for certain items on which tax is not recoverable.

We will explain you the procedure of VAT reimbursement, but all this process could be a lot more easy, if you decide to work with HOCUS FOCUS Film's production service. It's simple: You do not pay VAT - we take care of it (not that we pay it - but we have a special arrangement with the tax authorities).

GETTING V.A.T. REIMBURSED
The V.A.T. can be reimbursed only to foreign companies that do not offer services within Israel during a specific calendar year or quarter.
Expenditures for which VAT can be reimbursed :
- services rendered in Israel (rental of space, of equipment, sound stages, sets ... etc. ) and goods, including film purchased here, for the production of films
- rental vehicles for the transport of equipment only. ( Not for transport of people )

PROCEDURE FOR GETTING REIMBURSED
An application for reimbursement must be submitted within 6 months after the end of the calendar year during which the VAT was payable. The application should include originals of all bills (these will be returned within one month) .