Google, Facebook, eBay and other tech firms targeted by new Israeli tax rules

Issue has been raised that foreign firms do not pay same rate as Israeli ones; affected companies expected to include Google , Facebook, Amazon and eBay

Israel is to start collecting value added tax (VAT) and income taxes from foreign companies that do substantial business over the internet in Israel.

Under new guidelines issued by the Israel Tax Authority on Monday, foreign companies that operate websites and sell various services such as advertising and brokerage will be subject to 17% VAT as well as income tax on their activities in Israel.