Value-Added Tax In Israel
Value-Added Tax (VAT) is a tax that all Israeli consumers pay. It is a flat rate percentage of each sale or purchase that is included in the price of goods and services, imposed by the country as a source of income. As of 01/01/2019, the Israeli VAT rate is 16 percent.
Visitors to Israel may be able to get a refund of the Israel VAT tax paid on any goods bought for deportation. To qualify for the VAT refund, the following all must be true:
- Your purchase must have been made at a store that participates in the VAT refund program. It is easy to determine as there will be a “tax refund for tourists” sticker on the door or window of the shop.
- Your purchase must have cost more than 400 shekels (about $100 US Dollars at the time of writing) including the VAT tax.
- You must be taking the items out of the country and they must be for personal use.
- Items may not be food, drinks, or tobacco as these items do not qualify for a VAT refund.
Simply having a receipt for an item does not guarantee a refund. When you make a purchase, ask the store clerk for a special tax-refund invoice. The invoice must contain the printed name of the store. You will need to have the invoice, the receipt, and the item with you when applying for the refund.
Where To Get a VAT Refund
Tourists can apply for a VAT refund for their items at these locations:
- Ben Gurion Airport (Terminal 3)
- Ovda Airport
- Ramon Airport
- Seaports in Ashdod, Eilat, and Haifa
- Land border crossings: Nahar Ha-Yarden (
Houssein ) Bridge, Alenbi Bridge, Rafiah Border Crossing, Taba Border Crossing, Aravah Terminal
Claiming Your VAT Refund
When leaving Israel, look for the VAT refund counter in the airport, seaport or at the border crossing. When flying, it is easiest to have the items in your carry-on because you will not be able to access your checked bags once you have dropped them off with the airline. Take the invoice, receipt
Once you leave the country, you will not be able to request any refund. Note, there is also a service commission that is applied when receiving a VAT refund in Israel. Follow this process and you will end up with some extra money at the end of your trip. One final tip, if you prefer to shop without paying any VAT in Israel, head to Eilat. Eilat is home to tax-free shopping.
