Israel and Palestinian Autonomous Areas concluded negotiations on transfer of goods and related tax procedures

The implementation of the new arrangements will commence on 1 January 2013

As reported by the Israeli Ministry of Finance on 31 July 2012, negotiations between the Palestinian Authority and the Government of Israel for arrangements regarding the transfer of goods and related tax procedures have been concluded.

According to the arrangements, the tax clearance mechanism regarding Value Added Taxes (VAT), purchase taxes and import taxes will be based on the actual and accurate transfer of goods between Israel and the Palestinian Authority, replacing the current practice of calculating such tax clearances on the reported transfer of such goods.

To support these efforts, the Israeli and Palestinian tax authorities will enhance the exchange of information regarding the actual transfer of goods.