A positive surprise: In August, there was an increase of more than 10% in the collection of value added tax

A positive surprise for both the economy and the state coffers: In August, there was an increase of more than 10% in the collection of value added tax (VAT) on all purchases of products and services in Israel compared to August in the last three years, and the total VAT collection is expected to be 7.7. NIS 1 billion. Additional income to the state coffers in just one month: more than NIS 700 million.
Value added at a rate of 17% was charged on all purchases and payments for services in Israel. An increase in its collection indicates large purchases made by Israeli residents alone, when there is no tourism from abroad to Israel. It should be noted that when tourists come to Israel, they pay VAT, but are entitled to a refund of this tax upon departure. Citizens of Israel, when in contrast to the summer periods in recent years - about two million Israelis who usually travel abroad - remained in the country.
The large increase in VAT collection, at an estimated rate of more than 10%, has come alongside a recovery in all tax collection in recent months, with the start of the recovery in the economy, following a near-total closure in March and April this year. However, VAT collection in August is exceptional, with less VAT being collected in previous months than in the corresponding months in previous years.