AA 23407-08-18 Shomrei Emunim Ltd. v. Director of VAT Jerusalem
AA 23407-08-18 Shomrei Emunim Ltd. v. Director of VAT Jerusalem (Nevo 22.11.2023)
The Court partially granted the appellant's appeal regarding the VAT Director's decision to retroactively reclassify it from a "non-profit organization" (Malkar) to a "dealer" (Osek) and to impose tax on transactions that preceded the date of the Director's reclassification decision. The Court held that the reclassification shall take effect from the date of the decision to change the classification and not retroactively.
In its judgment, the Court permitted the appellant to deduct input tax for a period of five years prior to the date of the reclassification in 2018.
