Communications with the
Israel V.A.T (Value Added Tax) Authorities


9 Cheshvan 5757 (11/9/96)

Revital Ben Arush
Director of Professional Division
32 Agron Street
P.O.Box 320
Jerusalem 91002

RE: Proposal to reinstitute the Half-Shekel.

Dear Ms. Arush,

Shalom. My name is Reuven Prager.

These last thirteen years I have been researching to restore the ancient custom from the book of Exodus of giving a ceremonial Half-Shekel on Purim. During the last two years the project has begun to move from the theoretical to the realm of physical reality. I am in need of the following information from your office in order to determine if the project can be carried out within existing law, and if not, what changes would need to be enacted to allow for the materialization of the plan;

1) I need all legislation concerning the charging of VAT on the sale of coins.
2) I need the legislation which grants the Postal Authority exemption from charging VAT.

If it is possible to receive the above in both Hebrew and English it would be greatly appreciated. If you need more information in order to fulfil my request, please feel free to call on me. Thank you in advance.

G-d Bless,

Reuven Prager
Beged Ivri

cc: Mr. Moshe Klirs, Commercial Manager, IGCMC


The Treasury/Division of Customs and VAT
28 Kislev 5757
9 December 1996 No.:VAT/25-1

Mr.Reuven Prager
"Beged Ivri"
111 Agrippas Street


RE: Proposal to Renew the Custom of "Half-Shekel"

In reply to your letter, I should like to make the following clear:

1. Our office does not and has not in the past sent anybody in the State economy the instructions of the law and the regulations promulgated according to said law. These may, of course, be obtained in shops selling professional and legal literature.

2. Re the collecting of VAT by the Postal Authority- the Postal Authority enjoys the status of a Malkar (non-profit organization) with regard to the law of VAT, 1975. Accordingly, it is exempt from taxation on its activities, but is obliged to pay salary taxes as stated in paragraph 4 of the law.

3. Nevertheless, in this case the manner of connection is unclear to us, and thus we cannot relate to the taxation side of the subject.


Salah Shema'ya
VAT - Professional Division

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