New Legal Amendments to Value Added Tax Provisions in Palestine

SadaNews: President of the State of Palestine Mahmoud Abbas issued a law decree No. (11) for the year 2026, amending law decree No. (26) for the year 2024 regarding Value Added Tax, based on the amended law decree draft submitted by the Council of Ministers and in the interest of the public.

The decree included substantial amendments to the administrative structure and the powers granted to the competent authorities in the original law, where the definition of "Commissioner General of Revenues" was abolished and the phrases related to his powers in several legal provisions were replaced to become the responsibility of the "Minister" or "Director General" or "Director General with the approval of the Minister". The new amendment granted the Director General the authority to register residents outside the state’s borders wishing to conduct business activities within, according to the conditions and guarantees specified in the Minister's instructions.

The law decree also organized the mechanisms for challenging and deciding on the due tax, stipulating the formation of a triad objection committee by the Minister based on the recommendation of the Director General to consider objections submitted by the taxpayers, with clear controls for the procedures for precautionary seizure, its conditions, and estimation expenses. It also mandated the specification of electronic forms, reports, accounting books, and other records that the taxpayer must manage for the purposes of implementing the provisions of this law decree.