Jerusalem, 5 May, 2026 (TPS-IL) — The Israel Tax Authority has opened the possibility for businesses across the country to receive advances on the compensation they will be paid for the losses incurred during the war with Iran.
On May 17, 2026, after the business VAT reports for the months of March-April 2026 are received, on the basis of which the compensation is calculated, the possibility of submitting claims for the compensation itself will open. Businesses that are found to be entitled to compensation will receive the amount of compensation they are entitled to, minus the advances that will be paid now. Businesses that receive advances and are later found not to be entitled to compensation, based on their VAT reports, will demand the return of the advances they received.
Businesses throughout the country whose transaction turnover in 2025 was 12,000 Shekels –400 million Shekels are eligible for the advance, and whose transaction turnover in March-April 2026 is expected to be at least 25% lower than their transaction turnover in March-April 2025, provided that this decrease was not caused by reasons unrelated to the security situation that prevailed in the country during the war. For businesses in the settlements of the confrontation line in the north, there is a separate advance track, which opened at the end of March 2026.
A business owner who filed a claim for June 2025, October 2023, or November-December 2023 will be able to request an advance of up to 80% of the compensation or advance payment received for one of these periods (whichever is higher). A business owner who did not file a claim for one of these periods will be able to request an advance of up to 80% of the business’s average monthly expenses in 2025, multiplied by a coefficient of 7%.