The leadership of the Israel tax authority for the first time issued a circular that spelled out the principles of charging income tax and VAT with rabbis, Kabbalists, mohel, Cantor, judges savvinitsky courts and other religious figures that provide private services to the population.
The circular was issued following the preparatory work undertaken after published in 2014 a scathing report by the state Comptroller, who claimed that the market for religious services, whose annual turnover is estimated at billions of shekels, remains outside the purview of tax administration.
According to the circular, the tax would apply to fees and gifts for services such as weddings, bar mitzvahs and other festive ceremonies, circumcision, prayer, Kabbalistic sessions, blessings, consultations, distribution or sale of amulets, distribution or sale of blessed water, kosher services, work in private savvinitsky courts and other services.
Take into account also such gifts as travel abroad for the service provider and members of his family. In addition, account will be taken of donations made in exchange for the provision of services, notes to The Marker.
Estimated tax revenues from the taxation of the provision of religious services to the population will amount to several hundred million shekels a year.