Indirect Taxation - impacts your business results
Fahn Kanne's Tax Department has expertise in the field of indirect taxation, including accompaniment, handling and consulting on a range of issues in the field of indirect taxation, including Value Added Tax, excise tax and customs. These issues may have a significant impact on the results of operations of many companies.
The Indirect Taxation Division of the Tax Department is at the disposal of its clients regarding the handling of taxation problems, as well as advanced tax planning, with a goal of reducing costs and achieving advantages over the competition.
Areas of expertise
Value added tax services
The Department renders a range of services in the field of VAT to companies and individuals and handles value added tax issues, such as:
- Tax opinions
- Preparation of requests for pre-rulings from the tax authorities
- Solution of problems and representation of clients at tax assessment proceedings before the tax authorities
- Submittal of requests for VAT refunds in respect of bad debts
- Consultation on VAT liabilities in connection with debt arrangements, severance and other payments
- Optimization of VAT reports
- Zero-rate VAT, etc.
Compiling a comprehensive plan on direct and indirect tax issues
In cases of local and international complex transactions, the Department assists in compiling a comprehensive plan in advance, integrating aspects dealing with direct taxes and indirect taxes, so as to achieve an optimization regarding tax payments.
Handling entitlement to zero-rate VAT
One of the more complex issues in the area of VAT is the entitlement to zero-rate VAT. In this area, the Department assists in planning the operating structure and, in appropriate instances, the Department provides an opinion or prepares a request for a pre-ruling, with a goal of reducing or eradicating the exposure to future tax charges.
The right to offset input VAT
In many instances, taxpayers are unaware of the rules and conditions behind the offsetting of input VAT and they belatedly discover that the Tax Authority denies their right to obtain a refund of the input VAT they paid during the course of business and they are asked to pay tax differentials of considerable amounts.
Take for example holding companies who are exempt from tax with regard to some of their transactions and, as a result, they are not entitled to full deductions (100%) regarding the input tax deriving from their business activity. In such cases, we offer tax planning with a goal of avoiding future tax liabilities.
We are experts in preparing requests for VAT refunds in respect of bad debts, from the preparation of the initial material, through the submission of the notification to the tax authority and culminating with the handling of the matter until the VAT refund is received by the client.
Customs and excise tax
Notwithstanding the decrease in the rate of customs and excise tax in Israel, many imported goods are still subject to import taxes in Israel, VAT, customs and excise tax.
We assist importers and exporters with their tax planning issues regarding import and export taxes, with a goal of reducing the tax liabilities in respect of imports, and assist them with filing claims for refunds of customs duties paid (e.g., claims for refunds of import taxes paid on raw materials used in exports, as well as various reasons for contact with the tax authority).
Planning in advance of a VAT audit
We provide consulting on the issue of how to prepare for an audit conducted by the Customs and VAT Division, including the performance of a "pseudo" audit, with the goal of checking the degree to which the Company is prepared for a real audit.
Partner, Head of tax departmentFind out more about Yigal Rofhe