I recently moved to Israel and started working as a translator for a company. Not knowing the procedures for taxes, I was somehow led to believe that I have to be an “osek murshe” and pay VAT. It turns out that I did not make enough annually to have to pay VAT, and I could have been an “osek Patur” and not pay VAT. The VAT was paid by the company (they pay the VAT for osek murshe). Question: Since I caused them to pay VAT unnecessarily (since I could have been an “osek patur”) do I have to pay them back for the VAT that they paid (which was in addition to my salary)?
Thanks.
Answer:
No, there is no need for this.
Although you could have been an “osek patur,” your official status was an “osek mursheh,” and therefore their paying VAT was legitimate and required.
If you do change your status retroactively (don’t know if this is possible), the relevant company would be able to claim back the VAT it paid.
Best wishes.
