Sale of watches and personal jewelry in Israel
A private individual has several luxury items in his personal collection: watches, precious stones, gold ingots, etc. ....
All the items are personal and this person does not meet the criteria of a "professional seller".
Question about taxation in Israel.
Is the sale of these items between private individuals taxable? Is it necessary to report the sale of such items to a regulatory body in Israel?
How could the bank accept the buyer's transfer for a transaction in this area?ALSO READ: Taxes in Israel: how does it work?
Normally, the sale of "goods for personal use" is not taxable.
We need to examine whether the watches and jewelry the person is selling are really "goods for personal use".
By way of comparison, gold bars and precious stones are not goods for personal use but objects purchased for investment purposes, so their sale is subject to capital gains tax. (tax on capital in Israel: 25%).
The same would therefore apply to the sale of watches or jewelry that have not been "worn" by their owner, but only purchased to be resold for speculative purposes.
In a nutshell:
The sale of personal property is not subject to tax, provided that the item sold is really personal property that is regularly used.
Your questions - our advice
- Is the capital gain subject to VAT?
- Is the capital gain subject to Bitouah Leoumi?
- How can you prevent the Israeli tax authorities from considering such transactions as "commercial transactions"?
- Is it necessary to open a company in Israel to sell personal property?