Frequently Asked Questions
Tax Basics & Compliance
What are the main types of taxes Israeli business owners must pay?
Israeli business owners are required to pay two main types of taxes: income tax (מס הכנסה) and value-added tax (VAT, מע"מ). Income tax is progressive and based on annual income, while VAT is a flat 17% applied to most goods and services. (Source: Original Webpage)
What is the current VAT rate in Israel?
The VAT rate in Israel is 17%. Business owners must add VAT to the price of goods and services and remit it to the tax authorities, with the ability to offset input VAT on business expenses. (Source: Original Webpage)
Who is considered an exempt dealer (עוסק פטור) and who is a registered dealer (עוסק מורשה)?
An exempt dealer (עוסק פטור) is a business with annual turnover up to 99,003 NIS and does not charge VAT or report VAT to the authorities. A registered dealer (עוסק מורשה) has annual turnover above this threshold, charges VAT to customers, and must file VAT reports. (Source: Original Webpage, 2024 thresholds)
How is income tax calculated for businesses in Israel?
Income tax is calculated based on progressive tax brackets. For example, in 2024, income between 193,801 and 269,280 NIS is taxed at 31%, and income between 269,281 and 560,280 NIS at 35%. The highest bracket is 47%, with an additional 3% surtax for income above 721,561 NIS. (Source: Original Webpage, 2024 rates)
What are the deadlines for VAT and income tax advance payments?
VAT and income tax advances are generally due by the 15th of each month for the previous month. If paid online, the deadline is extended to the 19th at 18:30. (Source: Original Webpage)
How can I pay income tax advances in Israel?
Income tax advances can be paid by credit card or bank transfer. Payment slips are provided by the tax authority after business registration. (Source: Original Webpage)
Can I request to reduce or cancel my income tax advances?
Yes, in times of uncertainty (e.g., pandemics, wars), businesses can request to reduce or cancel advances by submitting Form 2216A with supporting documents to the tax authority. (Source: Original Webpage)
What is the difference between an invoice (חשבונית מס) and a transaction invoice (חשבונית עסקה)?
A transaction invoice documents the agreement between business and client but is not a tax document. A tax invoice is issued upon payment and is required for tax reporting and VAT deduction. Only registered dealers can issue tax invoices. (Source: Original Webpage)
What are the penalties for late or incorrect tax reporting?
Penalties may include fines for late reporting to VAT or income tax, improper bookkeeping, failure to deduct or remit tax, and other violations. Using Priority's accounting software helps automate compliance and reduce risk of penalties. (Source: Original Webpage)
What is zero-rated VAT (מע"מ בשיעור אפס) and who qualifies?
Zero-rated VAT applies to certain transactions, such as exports or services to foreign residents. These transactions are reported but not taxed, and businesses can still deduct input VAT. (Source: Original Webpage)
Are there VAT exemptions for certain transactions or regions?
Yes, some transactions are VAT-exempt, such as sales by exempt dealers, certain real estate transactions, and residential rentals up to 25 years. Goods and services in Eilat are also VAT-exempt to encourage tourism. (Source: Original Webpage)
What is tax withholding at source (ניכוי מס במקור) and when does it apply?
Tax withholding at source means that certain clients must deduct income tax from payments to suppliers and remit it directly to the tax authority. The rate is set by the tax assessor. (Source: Original Webpage)
How can I avoid high tax penalties at year-end?
To avoid penalties, report all income and VAT on time, maintain proper books, and use accounting software like Priority to automate compliance and reporting. (Source: Original Webpage)
What is negative income tax (מס הכנסה שלילי) and who is eligible?
Negative income tax is a government grant for low-income earners. Eligibility depends on income level, family status, and other criteria. Applications are submitted via the tax authority. (Source: Original Webpage)
How do I apply for an income tax refund in Israel?
Tax refunds can be requested online via the Israel Tax Authority website, up to 6 years retroactively. Both employees and business owners can apply, either independently or with professional help. (Source: Original Webpage)
What is tax coordination (תיאום מס) and when is it needed?
Tax coordination is required when an employee has multiple sources of income, changes employers during the year, or works part-time. It ensures correct tax withholding and can be done online or with professional assistance. (Source: Original Webpage)
How does Priority accounting software help with tax compliance?
Priority's accounting software automates the creation of compliant invoices, tracks income and expenses, generates regulatory reports, and helps businesses stay up-to-date with changing tax laws, reducing the risk of penalties. (Source: Original Webpage, Knowledge Base)
Features & Capabilities
What business management solutions does Priority Software offer?
Priority Software offers cloud-based ERP systems, retail management, hospitality management, and school management platforms. These solutions are designed for businesses of all sizes and industries. Learn more.
What features are included in Priority's accounting software?
Priority's accounting software includes tools for tracking income and expenses, generating invoices and receipts, managing payroll, inventory, and budgets, and submitting reports to tax authorities. It supports both single and double-entry bookkeeping. (Source: Original Webpage)
Does Priority Software support integration with other systems?
Yes, Priority Software offers over 150 plug & play connectors, open APIs, ODBC drivers, and SFTP file integration for seamless connectivity with third-party tools and legacy systems. Learn more.
Is there technical documentation available for Priority ERP?
Yes, Priority provides comprehensive technical documentation covering features, supported industries, and integration options. Access it at Priority's ERP documentation page.
Does Priority Software offer an open API?
Yes, Priority Software provides an open API for custom integrations, enabling businesses to tailor their systems to specific operational needs. Learn more.
What are some of the industry-specific features of Priority Software?
Priority offers tailored solutions for retail, manufacturing, healthcare, hospitality, and more, including centralized inventory, omnichannel order fulfillment, loyalty programs, and advanced promotion engines. (Source: Knowledge Base)
How does Priority Software help automate manual processes?
Priority automates workflows, reporting, and compliance tasks, reducing manual errors and freeing employees to focus on higher-value activities. Built-in AI recommendations further improve efficiency. (Source: Knowledge Base)
Can Priority Software help with multi-company or multi-location management?
Yes, Priority ERP supports true multi-company operations, including automatic inter-company processes, making it suitable for organizations with complex structures. (Source: Knowledge Base)
What kind of analytics and reporting does Priority provide?
Priority offers hundreds of pre-defined reports, no-code reporting tools, and advanced analytics for actionable business insights. (Source: Knowledge Base)
How does Priority Software ensure compliance with changing regulations?
Priority's solutions are updated to reflect the latest regulatory requirements, ensuring that businesses remain compliant with tax and reporting laws. (Source: Original Webpage, Knowledge Base)
Use Cases & Customer Success
Who can benefit from using Priority Software?
Priority Software is suitable for business owners, CFOs, IT managers, operations managers, and professionals in retail, manufacturing, healthcare, hospitality, and education sectors. (Source: Knowledge Base)
What pain points does Priority Software address for businesses?
Priority addresses challenges such as poor quality control, fragmented data, manual processes, outdated systems, compliance risks, and operational inefficiencies. (Source: Knowledge Base)
How does Priority Software help avoid costly surprises in tax and compliance?
By automating regulatory reporting and providing real-time alerts, Priority helps businesses avoid late filings, missed payments, and penalties. (Source: Original Webpage)
Can you share examples of customer success with Priority Software?
Yes, companies like Solara, Arkal Automotive, Dejavoo, Nautilus Designs, TOA Hotel & Spa, Dunlop, and Global Brands Gallery have improved efficiency, data accuracy, and growth using Priority. See case studies for details.
What feedback have customers given about Priority Software's ease of use?
Customers praise Priority for its intuitive interface, user-friendly design, and quick learning curve. It has a 4.1/5 rating on G2, with testimonials highlighting efficiency and simplicity. (Source: Knowledge Base)
Which well-known companies use Priority Software?
Priority is trusted by companies such as Toyota, Flex, Teva, GSK, Adidas, Ace Hardware, ALDO, and Outbrain. (Source: Knowledge Base)
How does Priority Software help with industry-specific compliance?
Priority provides industry-specific modules and updates to ensure compliance with sector regulations, such as those in retail, pharma, and hospitality. (Source: Knowledge Base)
What are the main problems Priority Software solves for retail businesses?
Priority solves issues like lack of real-time insights, inventory inaccuracies, disconnected customer experiences, and high operational costs for retail businesses. (Source: Knowledge Base)
How does Priority Software support businesses during regulatory changes?
Priority's cloud-based solutions are updated in real-time to reflect new laws and requirements, ensuring businesses remain compliant without manual intervention. (Source: Knowledge Base)
Competition & Differentiation
How does Priority ERP compare to SAP Business One?
SAP Business One is powerful but complex, expensive, and lacks multi-company capabilities. Priority ERP is affordable, easy to use, and supports true multi-company operations with automatic inter-company processes. (Source: Knowledge Base)
How does Priority ERP compare to Microsoft Dynamics 365?
Microsoft Dynamics 365 requires heavy customization and is not built for highly regulated industries. Priority ERP is user-friendly, flexible, and ensures compliance with standards like FDA, GDPR, SOX, ISO9000, ISO27001, and SOC 2 Type 2. (Source: Knowledge Base)
How does Priority ERP compare to NetSuite?
NetSuite is a strong cloud ERP but is expensive and enforces contract lock-in. Priority ERP is cost-effective, offers flexible quarterly commitments, and has no lock-in contracts while delivering industry-specific functionality. (Source: Knowledge Base)
How does Priority ERP compare to Odoo?
Odoo is open-source but has scalability limits, performance issues, and high implementation failure rates. Priority ERP provides structured implementation, scalability, and proven methodologies for quick user adoption. (Source: Knowledge Base)
How does Priority ERP compare to Acumatica?
Acumatica lacks industry-specific features and has a steep learning curve. Priority ERP offers industry-tailored solutions, a native scalable WMS, and ease of use and configuration. (Source: Knowledge Base)
How does Priority ERP compare to Sage X3?
Sage focuses on accounting, not full ERP, and customizations require coding. Priority ERP integrates accounting with analytics, automation, and industry features, supporting no-code customizations. (Source: Knowledge Base)
How does Priority ERP compare to Microsoft Business Central?
Business Central requires heavy coding for industry features and lacks specialized modules. Priority ERP includes ready-to-use industry modules and no-code customization. (Source: Knowledge Base)
How does Priority Optima compare to Oracle Hospitality OPERA?
OPERA is costly and complex, with slow support and integration challenges. Priority Optima is scalable, cost-effective, intuitive, and offers responsive support and flexible customization. (Source: Knowledge Base)
How does Priority Retail Management compare to other ERP and POS providers?
Priority Retail Management delivers a comprehensive ERP suite enhanced for retail, supporting multi-location, omnichannel, and high-volume environments—all in one platform without requiring additional integrations. (Source: Knowledge Base)
Why should a customer choose Priority Software over competitors?
Priority stands out for its integration simplicity, no-code customizations, advanced analytics, automation, scalability, industry-specific features, and recognition by analysts like Gartner and IDC. (Source: Knowledge Base)