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| package from purchase abroad - tax free! |
Do you live in Israel?
Are you wondering what to expect regarding taxes and fees if you shop online?
This guide will help you understand the basics that apply to residents of Israel when shopping online from overseas (yes, even if you're not a citizen, you need to know how your orders will be handled!).
Most of us shop this way to save money, so who wants a tax bill surprise when the order gets here? This post will help you avoid a tax bill (legally, of course!).
Note: the same regulations apply to packages sent from abroad, even if they are gifts!
Some of my favorite websites to shop from are:
Amazon ~ iHerb ~ AliExpress ~ eBay ~
Amazon ~ iHerb ~ AliExpress ~ eBay ~
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Here's the rundown (full regulations can be found on the Israel tax authority's site)
When you get a package, the value of your purchase or package will be converted into US Dollars by the tax authority (using the exchange rate of the day they process it) to determine if it's subject to tax (no matter what currency was used when it was purchased).
Purchases up to $150/Packages with a declared value up to $150 - no taxes
Purchases or packages with a declared value above $150, up to $500 - VAT will apply in most cases (18% currently), and Purchase Tax (variable rates) may apply (purchase tax applies to very few items at this point!), but no customs taxes
Purchases or packages with a declared value over $500 - subject to all taxes (VAT of 18%, Purchase Tax (if applicable), and Customs Tax which varies by category)
Please take note that purchases and packages (even gifts) of up to $150 in value will automatically be subject to customs clearance fees if they arrive using an EMS service*, and some other type of deliveries may also be charged this fee (it's about 40 shekels right now). If the value of the purchase is higher than $150, the customs clearance fee can be higher as well.
Here's the rundown (full regulations can be found on the Israel tax authority's site)
Purchases up to $150/Packages with a declared value up to $150 - no taxes
Purchases or packages with a declared value above $150, up to $500 - VAT will apply in most cases (18% currently), and Purchase Tax (variable rates) may apply (purchase tax applies to very few items at this point!), but no customs taxes
Purchases or packages with a declared value over $500 - subject to all taxes (VAT of 18%, Purchase Tax (if applicable), and Customs Tax which varies by category)
Please take note that purchases and packages (even gifts) of up to $150 in value will automatically be subject to customs clearance fees if they arrive using an EMS service*, and some other type of deliveries may also be charged this fee (it's about 40 shekels right now). If the value of the purchase is higher than $150, the customs clearance fee can be higher as well.
Other fees are often added on by shipping companies, and there is not much oversight on the matter. I once saw a bill that included the following fees: Handling Fee, Import Approval Fee, VAT, Computer Fee, Unloading Fee, Storage Fee. Watch out for these fees from shipping companies/courier services - I recommend you always arrange to get your packages via a service that guarantees your fees have all been prepaid.
Please be aware that the purchase price only (not purchase + shipping) will determine whether an item will be taxed. If it is deemed taxable, all applicable taxes will be calculated on the purchase price + the shipping price. This means that if you order something for $150.01 plus $15 shipping, you will be taxed on the total value of $165.01!
One more important point: If you order multiple orders addressed to the same person, with the same address & phone number listed, from the same seller and they arrive within 72 hours of each other, customs may combine the orders and treat them as one purchase for tax purposes, or they may not. But it is a possibility you should be aware of before you place multiple orders.
Please be aware that the purchase price only (not purchase + shipping) will determine whether an item will be taxed. If it is deemed taxable, all applicable taxes will be calculated on the purchase price + the shipping price. This means that if you order something for $150.01 plus $15 shipping, you will be taxed on the total value of $165.01!
One more important point: If you order multiple orders addressed to the same person, with the same address & phone number listed, from the same seller and they arrive within 72 hours of each other, customs may combine the orders and treat them as one purchase for tax purposes, or they may not. But it is a possibility you should be aware of before you place multiple orders.
I recommend ordering at least 3 days apart, or ordering with different names and contact info (including the tax ID number you provide for clearing customs).
Note about Amazon orders: you do not have to wait 3 days to place another order. You can order all you want, just keep each individual order below the taxable threshold. If you're ordering small items, I still recommend ordering less than $75 at a time, because once you go over that (or it could be over $100) you will have to pay a fee of about $6. So save that fee for when you are ordering an item that's above $75 and don't place an order of a number of small items with a higher total! Just my 2 cents.
Tracking your item is possible! Often you'll see updates on the website you ordered from. I recommend you create an account on Israel Post - you can see updates there if your order is being processed by them! If your order is stalled for a long time, reach out to the seller and see if they can help you. I've found this to be very effective!
If your order is stuck in customs, or if you feel like you were charged tax by mistake, you will need to file an appeal. The appeal form is on the Meches site: https://www.gov.il/he/service/return-on-personal-import-taxes
Some of these regulations are different from what some people seem to believe, so please refer back to this guide if you are about to place an order and you're not sure what to expect taxwise.
If your order is stuck in customs, or if you feel like you were charged tax by mistake, you will need to file an appeal. The appeal form is on the Meches site: https://www.gov.il/he/service/return-on-personal-import-taxes
Some of these regulations are different from what some people seem to believe, so please refer back to this guide if you are about to place an order and you're not sure what to expect taxwise.
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*Examples of EMS services - Express Mail, Fedex, UPS and other express delivery services. Sometimes DHL is EMS and sometimes it is not.
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