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| Amazon sets up Israeli subsidiary, charges VAT

Zvi Herman    
Wednesday, 16 May 4:30 PM
International companies are now getting used and implementing the views of tax authorities worldwide on taxation of multinational Internet companies. Amazon (cloud computing services) has notified all of its customers in Europe, Africa, and the Middle East that starting on July 1, it will begin billing its customers in these regions for VAT, including its Israeli customers. Amazon is therefore falling in line with a global trend towards taxing multinational companies operating on the Internet and providing services in countries where the company is not registered and has no physical branches.

Amazon followed this measure by founding a company to serve as its branch in Israel and issue invoices to the company's Israeli customers. According to figures from the Registrar of Companies, Amazon was registered in Israel in March 2018. A report was submitted to the Israel Tax Authority when the subsidiary was founded and the company opened a file as a licensed dealer.
 
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