Israel Ma'am (VAT) Return — Doch Ma'am / PCN83

Confirm the business is registered as an Osek Murshe (עוסק מורשה) with a valid 9-digit Osek number, identify the filing frequency (bimonthly for most businesses; monthly if turnover exceeds the ITA monthly threshold or the business elected monthly filing), and establish the exact period covered. Verify the business is not an Osek Patur (exempt dealer below the ILS 120,000 annual threshold) and does not fall into a special regime (Kvutzat Osek group, Eilat free zone, diamond scheme) that requires escalation to a licensed CPA.

Collect all Heshbonit Mase (חשבונית מס — tax invoices) issued and received during the period, bimonthly bank statements (all business accounts), prior-period Doch Ma'am for any carried-forward excess input credit (יתרת תשומות), and import customs documents (ASYCUDA declarations) for imported goods. Flag any transactions without a valid Heshbonit Mase from a registered Osek Murshe supplier — these cannot carry input credit until resolved.

Classify all sales as standard-rated (17% — domestic supplies of goods and services), zero-rated (0% exports of goods with customs declaration, services to foreign residents used outside Israel, tourism services to non-residents with foreign currency payment and ITA Form 1345 evidence), or exempt. Calculate total output Ma'am. Identify any foreign digital or cloud services received from non-resident suppliers (e.g., Google Workspace, AWS, Microsoft Azure) that require self-assessed reverse-charge output at 17%.

Calculate total input Ma'am (תשומות) from purchases, services, and import Ma'am paid at customs. Apply the Section 41 Ma'am Law block on passenger vehicles (רכב פרטי) — no input credit regardless of business use. Apply the 2/3 partial credit rule for mixed-use vehicles claimed as commercial. Flag home-office and mobile-phone expenses as Tier 2 items requiring business-use percentage confirmation. Confirm reverse-charge inputs (foreign digital services) net to zero for fully taxable businesses. Deduct any carried-forward excess input credit.

Prepare the Doch Ma'am (דוח מע"מ — PCN83 or PCN874) on Shaam Online (misim.gov.il), entering output Iska (עסקה), zero-rated Yetsia (יציאה), exempt Pator (פטור), input Totchaot (תשומות), and reverse-charge amounts. Calculate net Ma'am payable (מע"מ לתשלום) or confirm excess input credit to carry forward (יתרת תשומות). File by the 25th of the month following the period end. Pay any balance due via bank transfer or Shaam Online payment. Retain the filed return confirmation for 7 years.