On December 21st, the Israeli Ministry of Finance has finally adopted a new purchase tax on beverages, juices, concentrates, and powders for the preparation of beverages, based on their content of sugars and of other sweeteners. Even beverages containing only artificial sweeteners and having zero sugars will be taxed.
The new tax came into effect on January 1st, 2022. It will be applied to all products, whether imported or locally produced.
The updates were made in the Customs Tariffs Order. A decision whether a certain product must bear the new tax is linked to the product’s customs tariff classification.
There are certain exemptions:
– Grape must be exempted as it is used for ceremonial purposes.
– Lemon juice and concentrates are exempted as their sugar content is less than 5% (in the juice).
– There will be no double taxation (on local manufacturers who import for the purpose of producing beverages)
The tax applies also to stocks found in warehouses.
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