Expense management module › Global expense management › Palestine
Last updated : 12.05.2026
Expense rules in Palestine.
Palestinian Authority applies VAT at 16% (aligned with Israel via 1994 Paris Protocol). ILS used, JOD also in circulation. Conflict context.
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1Expense rules & reclaimable VAT
VAT 16% aligned with Israel (1994 Paris Protocol). ILS dominant in West Bank, JOD as complement.
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 16% | Deductible | Invoice + Tax no |
| Lodging | 16% | Deductible | Tax no |
| Alcohol | 16% | Limited | Excluded |
| Fuel | 16% | Deductible | Invoice |
| Transport | 16% | Check | Variable access zones |
| Gifts | 16% | Non-deductible | Cap |
Receipt
Tax invoice
Tax no mandatory
Context
Active conflict since 2023
Check security/access
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | Invoice |
| Company car | – | Card | – |
| Taxi | – | 100% receipt | Invoice |
Access
Zones A/B/C
See Oslo 1995
3Per diem and travel allowances
Company policy. West Bank (Ramallah, Bethlehem). Gaza: severely restricted access.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Ramallah | ILS 60 | ILS 250 | ILS 450 |
| Bethlehem | ILS 50 | ILS 200 | ILS 380 |
| Nablus | ILS 45 | ILS 180 | ILS 320 |
| Gaza | Acces tres restreint | Severely restricted | – |
Conversion
~1 EUR = 4 ILS
Variable
4Foreign VAT recovery
Limited VAT recovery. Coordination with Israeli ITA via clearance mechanism.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident | Limited credit | Monthly | Israel clearance |
| Non-resident | None | – | Final cost |
| NGO/Humanitarian | Exemption | Per approval | Special status |
Limitations
5 years
Keep
Security
Check sanctions
DGSE/OFAC
Centralize your Palestine expenses
Illizeo handles ILS/JOD dual currency and VAT compliance (with security check) for your teams in Palestine.
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