New rules are expected to have a beneficial impact on companies carrying out clinical trials on humans in Israel.

Section 30(19) of the Israeli VAT Law was amended in December 2014 such that the provision of supervision, coordination and control services in Israel in connection with carrying out medical experiments on humans to foreign residents shall be subject to Zero VAT.

The amendment was enacted in light of the importance of clinical researches carried out in Israel by multinational companies, the contribution of those clinical researches to the health of the citizens of Israel and the competition with other countries which already exempt such clinical researches from VAT.

For further information please feel free to contact: Liat Neuwirth (liat.neuwirth@il.pwc.com)