Smart VAT Calculator For Business Owners

How much VAT do you have to pay in Israel today?

As of 2025, the VAT rate in Israel is 18%. A licensed dealer or company must calculate and pay this VAT on their taxable income. With the help of the VAT calculator for business owners listed on this page, you can calculate the amount accurately, including VAT offset paid on expenses.

How is VAT calculated on income?

To calculate the amount of VAT you need to pay, you need to know whether your income includes VAT or not:

If the income includes VAT — consider how much of the amount is VAT and how much is net.

If the income does not include VAT — 18% of the amount is considered as an obligation to pay VAT.

Our calculator allows you to select both modes and calculate accordingly.

What is VAT on offsetting expenses?

If you purchased services or products for your business and paid VAT on them, you may offset this VAT from the amount you need to transfer to the country.
The calculator takes into account the VAT of your expenses, and shows you how much VAT you have to pay net, after offsetting.

Is the calculator also suitable for an exempt dealer?

The calculator is mainly intended for an authorized dealer or a limited company, as it does not charge and does not pay VAT.
If you are dealing with an exemption — there is no need to calculate the VAT you owe to the state, but you should know the difference and consult an accountant about filing annual reports.

How does the calculator help me?

The calculator helps you:

Know exactly how much VAT you must pay each month.

Check if your income reflects a proper VAT payment.

Figure out how much net you have left in the business after paying the VAT.

Plan cash flow more correctly in preparation for reporting per year.