Is it Required to Pay Customs and VAT on Royalties and License Fees When Importing Products to Israel?

04 November, 2020

The Customs Ordinance states that royalties and license fees should be added to the value of the goods for the purpose of custom duties.

What are royalties?
What are license fees? Do they include usage fees for software?
Must they be added in all circumstances?
What happens if I pay them separately at the end of the year?
What happens if the bank deducts VAT while transferring the payment to the supplier?
What did the Supreme Court have to say on the matter?


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