🇵🇸 State of Palestine
VAT 16% — Full compliance with Income Tax Authority (ITA) requirements
Value Added Tax in Palestine
Palestine operates a Value Added Tax (VAT) system at a standard rate of 16%, administered by the Income Tax Authority (ITA). VAT is coordinated with the Israeli tax framework under the Paris Protocol economic agreement. Palestine uses the Israeli New Shekel (ILS) as its primary currency. XiKey handles Palestine's unique dual-authority tax environment correctly.
- 16% standard VAT rate
- Income Tax Authority (ITA) compliant
- ILS with ₪ symbol
- Full Arabic RTL invoices
- Dual-authority tax environment support
- Sequential invoice numbering required
Palestine Compliance Requirements
Full support for Palestine's VAT system
Dual-Authority Tax Environment
Palestinian VAT is coordinated with the Israeli tax framework under the Paris Protocol. XiKey understands this unique environment and applies the correct rules for both local and cross-border transactions.
Israeli New Shekel (ILS)
Palestine uses the Israeli New Shekel (ILS) as its primary currency with the ₪ symbol. XiKey handles the Shekel with 2-decimal Agora precision and supports the Jordanian Dinar (JOD) as a parallel currency used in some areas.
ITA Invoice Requirements
The ITA requires invoices to include: supplier name and tax registration number, invoice date and sequential numbering, Arabic description of goods and services, taxable amount, VAT rate and amount in ILS.
Palestine-Specific Notes
Unique Tax Environment
Palestine operates within a unique tax environment where VAT is coordinated with the Israeli tax framework under the Paris Protocol economic agreement (1994). It uses the Israeli New Shekel (ILS) as primary currency, with the Jordanian Dinar used in some areas. XiKey handles this dual environment correctly — 16% tax, Arabic invoicing in ILS, and support for cross-border operations.
| Item | Details |
|---|---|
| Tax Type | VAT (Value Added Tax — coordinated with Israeli framework) |
| Standard Rate | 16% |
| Reduced Rates | Exports 0%, some financial services exempt |
| Exchange Rate | 1 USD = ~3.6 ILS (floating rate) |
| Tax Authority | ITA — Income Tax Authority |
Ready to Deploy in Palestine?
XiKey is ready to run in Palestine today — 16% VAT, ITA-compliant Arabic invoicing, and ILS with ₪ symbol.