Israel Tax Codes
Tax codes determine how much tax is due for each transaction line item. For NetSuite to calculate correct values on transaction records and tax reports, you must ensure that the tax codes for Israel are set up correctly.
For more information about tax codes, see Tax Code Properties and Creating Tax Codes.
Tax Code Table for Israel
The following table shows the tax properties required to correctly generate the Israel Tax Reports. The tax code names, or letters presented in the table, are suggested names or default system preferences. You can rename the tax codes. Tax reports identify transactions by looking at the tax code properties, not the tax code names.
To define VAT Codes:
-
Go to Setup > Accounting > Tax Codes.
-
Click New Tax Code.
-
Select the country.
-
Fill in the required fields. Ensure that the following information is added:
Tax Code
Rate
Type
Available on
ILS -VAT on Sales
17%
ILAR
Sales Transactions
ILSE מע"מ עסקאות פטורות Zero percentage Sales VAT
0%
ILAR
Sales Transactions
ILY – מע"מ עסקאות יצוא Sales Tax for Export
0%
ILAR
Sales Transactions
ILM – מע"מ עסקאות חשבונית עצמית Self Invoice Sales Tax
17%
ILAR
Sales Transactions
ILT – מע"מ תשומות רגילות VAT on Purchase
17%
ILAP
Purchase Transactions
ILTA – מע"מ תשומות ציוד VAT on Assets
17%
ILAP
Purchase Transactions
ILC – מע"מ תשומות חשבונית עצמית Self Invoice Purchase Tax
17%
ILAP
Purchase Transactions
ILK – מע"מ תשומות קופה קטנה VAT on Purchase for Petty Cash
17%
ILAP
Purchase Transactions
ILR – מע"מ תשומות יבוא רגילות VAT on Purchase for Import
0%
ILAP
Purchase Transactions
ILRA – מע"מ תשומות יבוא ציוד VAT on Purchase for asset import
0%
ILAP
Purchase Transactions
IL - מע"מ תשומות לא לדיווח VAT on Purchase not for reporting
0%
ILAP
Purchase Transactions
IL - מע"מ תשומות מעבר VAT on Purchase clearing
17%
ILAPN
Purchase Transactions
ILT - מע"מ תשומות אחרות 1/4VAT on Purchase others 1/4
3.7694013304%
ILAP
Purchase Transactions
ILT - מע"מ תשומות אחרות 2/3 VAT on Purchase others 2/3
10.7255520505%
ILAP
Purchase Transactions
ILK - מע"מ תשומות קופה קטנה 1/4VAT on Purchase for Petty Cash 1/4
3.7694013304%
ILAP
Purchase Transactions
ILK - מע"מ תשומות קופה קטנה 2/3VAT on Purchase for Petty Cash
10.7255520505%
ILAP
Purchase Transactions
ILH – מע"מ תשומות אחרות על פי חוק VAT on Purchase others by Law
17%
ILAP
Purchase Transactions
-
Click Save
To update Set Up Taxes:
-
Go to Setup > Accounting > Set Up Taxes.
-
Click the Israel subtab.
-
Check the Enable Tax Lookup on Sales and Purchases box.
-
Verify that the Default Tax Code list displays UNDEF-IL.
-
On the Tax subtab, verify that the Preferred Tax Agency is populated for Israel.
-
Click Save.
To update accounting preferences for Withholding Tax functionality:
-
Go to Setup > Accounting > Accounting Preferences.
-
Click the Items/Transactions subtab.
-
From the Purchase Discount Account list, select 9090 Withholding Tax – Clearing Account IL.
Note:The account must be a P&L account, not a balance sheet account. The balance sheet accounts will not be shown.
-
Click Save.
To update accounting preferences for Bills functionality:
-
Go to Setup > Accounting > Accounting Preferences.
-
From the Allow transaction date outside of posting period list in the General Ledger section, select Allow.
-
Click Save.
To view imported exchange rates, go to Lists > Accounting > IL Currency Exchange Rates. To verify that the correct rates are retrieved, see https://illocalizationservice.azurewebsites.net/api/BOIExchangeRates.
To check the script for importing exchange rate from the Bank of Israel:
-
Go to Customization > Scripting > Script Deployments.
-
On the Script Deployments page, in the Script column look for IL Sched Update Exchange Rates and click the corresponding Edit link.
-
On the Schedule subtab, verify that the script is deployed, the status is scheduled and the schedule is set to daily, repeating every other day.
Note:If currency exchange rates not provided by the Bank of Israel are required, ensure that the Bank of Israel script is scheduled to occur shortly after the other exchange rate provider. This will ensure that the Bank of Israel exchange rates are used.
-
On the Parameters subtab, check the Update ILS only box.
-
Click Save.