Finance Minister Yair Lapid and Attorney General Yehuda Weinstein have compromised.
The main factor entitling buyers of new homes to be exempt from VAT will be military or national service, it was agreed today in discussions between Finance Minister Yair Lapid and his top officials and Attorney General Yehuda Weinstein and his officials.
However, following lengthy discussions Weinstein refused to set criteria which did not extend to the entire population while Lapid insisted on preferential treatment for those who undertake military or national service.
Ultimately a compromise was reached. Those undertaking national service will be allowed to buy a 0% VAT apartment for up to NIS 1.6 million including VAT. Other Israelis will be able to buy a 0% VAT apartment up to NIS 600,000 including VAT.
Published by Globes [online], Israel business news – www.globes-online.com – on May 11, 2014