Dov and Gadi shared an apartment. The apartment was furnished simply, with the notable exception of gedolim pictures. Large, framed portraits of many gedolim adorned the walls.
Dov was going with his father to Israel for Chanukah. “Could you pick up two more gedolim portraits?” Gadi asked. “I’d like large ones of the Chazon Ish and of Rav Ovadiah Yosef. I’ll split the cost with you.”
“I’m happy to get them,” said Dov. “When I return, I’ll let you know what they cost.”
While in Israel, Dov purchased two large portraits. With the frames, the total price came to 1,200 NIS.
“Save the receipt,” said the seller. “You are entitled to a refund of the V.A.T. at the airport when you fly back.”
“What is the V.A.T.?” asked Dov.
“V.A.T. is the sales tax, currently 17 percent which is included in the price,” explained the seller. “Israeli tax law allows a refund of the V.A.T. for tourists who purchased, at authorized stores, items above 400 NIS for their personal use abroad.”
“Thank you for letting me know,” said Dov.
Dov arrived at the airport a half-hour early so that he would have time to request the V.A.T. refund.
“There is a commission fee for the service,” the person at the desk said. “For items costing 1,0001-2,200 NIS, the commission is 10.5 percent of the V.A.T, so the effective refund is about 15 percent. In your case, the total refund comes to 182 NIS.”
“Well, 182 NIS saved is still 182 NIS earned,” Dov said to his father.
“What will you tell Gadi?” Dov’s father asked. “Do you share the V.A.T. refund?”
“The refund was under my name,” said Dov. “It was given to me.”
“But you’re partners in the purchase,” said his father. “The effective cost was 182 NIS less.”
“The price was 1,200 NIS,” argued Dov. “The V.A.T. return was a tax refund given to me alone.”
“Speak with Rabbi Dayan,” suggested his father.
Am I entitled to keep the entire V.A.T. return?” Dov asked Rabbi Dayan.
“Although the refund was granted to you,” replied Rabbi Dayan, “you must share the saving.”
“Why is that?” asked Dov.
“The Tosefta [B.M. 8:9] teaches: Tax authorities who exempted partners – the saving is shared, but if they said they exempted so-and-so, the exemption is his,” explained Rabbi Dayan. “Despite the simple reading, R. Simcha, cited by the Rosh and Shulchan Aruch, explains that the issue depends on whose initiative it was. If one of the partners requested the exemption, he acts as their joint agent and the saving is shared; if the tax agents exempted so-and-so of their own initiative, the savings is his.” (C.M. 178:1)
“Sma [178:1] clarifies that the saving is shared when the initiative was by the partner,” added Rabbi Dayan, “even when the tax agent specified that he is exempting so-and-so.”
“Is this explanation accepted by other authorities?” asked Dov.
“Some authorities disagree,” said Rabbi Dayan. “Maharshal sides with Maharam, who reads the Tosefta simply; if so-and-so specified his name when asking for the exemption, he is entitled to the entire amount [Shach 178:2]. Similarly, Terumas Hadeshen [#341] cites a dispute when the partner stated beforehand that he is requesting specifically on behalf of himself. Bach [C.M. 178:1] suggests that, according to one version of R. Simcha, if the tax agent is not aware that there is a partner, the first one can retain the entire saving for himself.”
“What’s the conclusion?” asked Dov.
“Since the Shulchan Aruch rules like R. Simcha, you must share the refund,” said Rabbi Dayan. “This is certainly true in this case, where the exemption was calculated on the full price, including your partner’s share in the V.A.T.”
(See Pischei Choshen, Shutafim 1:27; “Shaliach Shekibbel Hechzer Ma’am,” by Rav Z.Y. Ben-Yaakov, Zechor L’Avraham (Holon)77, 5756, pp. 340-346.)