VAT Compliance Declaration (Zero VAT Rate)

VAT Compliance Declaration (Zero VAT Rate)

VAT Compliance Declaration (Zero VAT Rate)

As part of our ongoing compliance with the Israeli Tax Authority, and in order for us to continue issuing your invoices with 0% VAT (Zero Rate), we kindly ask Infinite Equity, Inc. to review and sign the attached Regulatory Compliance Declaration.

This short form simply confirms that your company is registered abroad and that the services provided by NETO are used for your business activities outside Israel. Providing this declaration allows us to continue issuing invoices without adding the standard 18% VAT.

Please sign and return the document at your convenience.
If anything is unclear, we will be happy to assist.

Date: _________

Regulatory Compliance Declaration – Zero Rate VAT

To: NETO (Bareket IT Ltd.)

In accordance with Section 30(a)(5) of the Israeli VAT Law and Regulations 12 & 12A, we, the undersigned (“Client”), hereby declare as follows:

1. Foreign Resident Status The Client is a corporation incorporated and registered solely outside Israel and does not maintain a permanent establishment for VAT purposes in Israel.
   For clarity: engaging workers in Israel through NETO does not constitute business activity in Israel for VAT purposes.

1. The Services provided by NETO (employment / payroll / EOR / outsourcing) are purchased solely for the Client’s business use abroad, and: 
   1. are not intended to provide a separate benefit to any Israeli resident;
   2. are not related to any asset located in Israel;
   3. are not provided to a foreign resident while physically present in Israel.

1. Documentation of Transaction Details (Regulation 12), The Client acknowledges that the Transaction Price, Payment Method, and Currency, as stated in each Payment Demand and/or Tax Invoice issued by NETO, constitute the required written documentation under Regulation 12.
   All payments to NETO will be made from outside Israel, unless otherwise documented.

2. Use of Third-Party Payment Providers Notwithstanding what is stated in section 3, the Client confirms that payments may be transferred through Israeli payment service providers solely for logistical convenience or cost reduction. This payment method does not change the identity of the service recipient. The local payment provider has no connection to the actual services provided by NETO and receives no benefit from them, other than facilitating the financial transfer itself.

Client Details & Signature
Company Name: ______________________________________
Country of Incorporation: _________________________________
Registration Number: ____________________________________
Address: ______________________________________________
Authorized Signatory: ____________________________________
Title: _________________________ Date: ___________________
Signature: ________________________________