The ministerial legislative committee is due to discuss zero VAT bill within days, after a number of changes were made. If the Knesset plenum passes the bill, it will come into effect on September 1.
The changes include raising the eligibility threshold for applicants who did not serve in the IDF or National Service from NIS 600,000 to NIS 950,000, and eliminating the eligibility document. The revised bill also sets September 1 for the law to come into effect, stating, "It will apply to transactions for the sale of residential apartments to eligible homebuyers or beneficiaries from this date forward."
The change means that even if the law is not passed in full, or faces objections or petitions to the High Court of Justice, it will come into effect on the stipulated day. This could be problematic because until the Government Assessor decides the value per square meter of an apartment, and the housing minister or the finance minister do not publish specifications, or if the preliminary work is not completed by September 1, it will not be possible to apply the law. The deadline is liable to create problems between sellers, buyers, and the Tax Authority over the amount of the tax break.
Published by Globes [online], Israel business news - www.globes-online.com - on June 15, 2014
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