National Civil Service Volunteers Will Also Be Included in the 0% VAT Benefit

June Green
June 23, 2014   
The Ministry of Finance initially excluded ultra-Orthodox volunteers and young men who received an exemption from the IDF from receiving the benefit. • Following a request from the Director General of the National Civilian Service Authority, the decision was changed.
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The memorandum on the zero VAT law for apartment buyers, which was distributed about 3 weeks ago by the Ministry of Finance, includes a definition of 'beneficial purchaser', which states that military and national service graduates will be entitled to a 0% VAT benefit on the first apartment they purchase.

However, the initial version that was distributed did not include the ultra-Orthodox volunteers, nor the boys who received an exemption from the IDF and volunteered for national-civilian service, because the criteria for receiving the benefit according to the proposal are: a minimum of 18 months of service for men, and 12 months for women.

Establishing a minimum of 18 months of service for men instead of 12 months of service is problematic both for ultra-Orthodox servicemen who completed 12 months of civilian service, in accordance with the length of service that was set by law before the approval of the new Equal Burden Law, and for men who received an exemption from the IDF and volunteer for national service for 12 months or more (non-ultra-Orthodox, those receiving an exemption for medical and other reasons).

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In light of this, many volunteers would find themselves ineligible for this benefit, due to incorrect wording that does not match the definitions of national-civilian service for each of the volunteer sectors.

Following this, the Director General of the National Civilian Service Authority, Minister Shalom Jarbi, appealed to the Director General of the Ministry of Finance, Yael Andoren, with a request to correct this discrimination, and to include in it also the ultra-Orthodox servicemen and the young men who received exemption from service in the IDF and volunteered for national service.

This week, the National Civilian Service Authority announced that the comment from the Director General of the National Civilian Service Authority, Minister Shalom Jarbi, was accepted, and in the proposed law, the criteria for eligibility for the benefit have been changed, and now stand at a minimum of 12 months of service, for both men and women.

Director General of the National Civilian Service Authority, Minister Shalom Jarbi: "I welcome the fact that our reservation was accepted, and that following our request with the blessing of the Minister in charge, MK Uri Orbach, the ultra-Orthodox volunteers and the boys who received an exemption from the IDF are now also included in receiving the benefit.".

Jarbi added: "Nearly 17,000 national-civilian service volunteers from all sectors make a significant contribution of their time and energy over a year or two to the State of Israel in a variety of fields, and they should be thanked for this. It is impossible that these volunteers will not also be entitled, after their service, to the same benefits granted to military service graduates when they purchase their first apartment.".


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