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 and update VAT Codes:

  1. Go to Setup > Accounting > Tax Codes.

  2. 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

To update Set Up Taxes:

  1. Go to Setup > Accounting > Set Up Taxes.

  2. Click the Israel subtab.

  3. Check the Enable Tax Lookup on Sales and Purchases box.

  4. Verify that the Default Tax Code list displays UNDEF-IL.

  5. On the Tax subtab, verify that the Preferred Tax Agency is populated for Israel.

  6. Click Save.

To update accounting preferences for Withholding Tax functionality:

  1. Go to Setup > Accounting > Accounting Preferences.

  2. Click the Items/Transactions subtab.

  3. From the Purchase Discount Account list, select Withholding Tax Clearing Account.

    Note:

    The account must be a P&L account, not a balance sheet account. The balance sheet accounts will not be shown.

  4. Click Save.

To update accounting preferences for Bills functionality:

  1. Go to Setup > Accounting > Accounting Preferences.

  2. From the Allow transaction date outside of posting period list in the General Ledger section, select Allow.

  3. Click Save.

To update Israel Localization Settings:

  1. Go to Customization > Lists, Records and Fields > Record Types, and then click IL Settings.

  2. From the More list, select View Records. IL Settings List page displays the IL Settings record.

  3. Click View next to the IL Settings.

  4. On the IL Settings page, verify that:

  5. On the Printing subtab, verify that the IL Localization Printing Type field displays the Advanced PDF Template value.

To view imported exchange rates, go to Lists > Accounting > IL Currency Exchange Rates. To verify that the correct rates are retrieved, see https://forex.boi.org.il/currency.xml.

To check the script for importing exchange rate from the Bank of Israel:

  1. Go to Customization > Scripting > Script Deployments.

  2. On the Script Deployments page, look for IL Sched Update Exchange Rates and click the corresponding Edit link.

  3. 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.

  4. On the Parameters subtab, check the Update ILS only box.

  5. Click Save.

To update the Israel Localization subsidiary settings:

  1. Go to Customization > Lists, Records and Fields > Record Types, and then click IL Subsidiary Settings.

  2. From the More list, select View records.

  3. Click the New IL Subsidiary Settings button.

  4. From the Subsidiary list, select the subsidiary you want to update.

To set up document printing:

  1. On the Extended Documents Printing subtab, ensure the following boxes are checked:

    • Wire Transfer Request Printing

    • WHT Vendor Letter Printing

  2. (Optional) Proceed with the following steps, if you use Sales Orders you can also use a commercial or proforma invoice.

  3. Click the Print Options subtab.

  4. If you want to copy text from the PDF transaction, check the Enable PDF Contents Extract box. The layout option is solely for the logo definitions.

  5. If you want to remove or hide the signature line from the transaction layout, check the Hide signature box.

  6. If you use the Delivery note, select a template from the Delivery Note Print Return Form list.

To set up transaction numbering:

  1. Go to Setup > Company > Auto-Generated Numbers.

  2. Check the Use Subsidiary Column box for all fields.

  3. Go to Setup > Accouting > Manage Accouting Periods to define or verify accounting periods.

  4. Go to Setup > Accounting > Manage Tax Periods to define or verify tax periods.

To define Israeli roles:

  1. Go to Setup > Users/Roles > Manage Roles.

  2. Click customize on the IL Localization record.

  3. In the Name field, enter Custom IL Localization.

  4. In the Subsidiary Restrictions section, go to the Selected Subsidiaries list and select the IL Subsidiary for the given role.

To assign Israel Localization forms to your Israeli roles:

  1. Navigate to Forms tab.

  2. Verify that the Israel Localization forms are checked.

General Notices