Tax Liability in a Transaction for the Sale of Shares on Credit
Categories: Tax
The Israeli Tax Authority recently published a tax decision (the “Decision”), which concerns the issue of liability for value added tax (VAT) with regard to the sale of shares, where the proceeds for such sale will be paid partly in cash and partly by way of credit. In accordance with the Decision, the interest component and the linkage differentials, which derive from the credit component, will be subject to VAT as a taxable transaction, as described below.
