Shopping Online: The Essential Guide to TAXES for Israelis shopping online from abroad!

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package from purchase abroad - tax free!

Shopping online and wondering what to expect regarding taxes and fees? This guide will help you understand the basics that apply to residents of Israel when shopping online from overseas. 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!

Here's the rundown (the full regulations can be found on the Israel tax authority's site)

Your purchase or package, no matter what currency it was in, will be translated into US Dollars by the tax authority (using the exchange rate of the day they process it) to determine if it's taxable:

Purchases up to $75/Packages with a declared value up to $75 - no taxes

Purchases or packages with a declared value above $75, up to $500 - no customs taxes, but VAT will apply in most cases (17% currently), and Purchase Tax (variable rates) may apply (purchase tax applies to very few items at this point!)

Purchases or packages with a declared value over $500 - subject to all taxes (VAT , Purchase Tax (if applicable), and Customs Tax)

Please take note that purchases and packages (even gifts) of up to $75 in value will be subject to customs clearance fees if they arrive using an EMS service* (about 35 shekels), and if the value of the purchase is higher, the customs clearance fee can be higher as well. Other fees are often added on by shipping companies, as there is really not much oversight! I recently saw a bill that included the following fees: Handling fees, Import approval fee, VAT, Computer fee, Unloading fee, Storage fee. Watch out for these fees from shipping companies/courier services. I recommend you always try 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. Once it is found to be taxable, however, applicable taxes will be calculated on the purchase price + the shipping price.

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. 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).

If your order is stuck in customs, or if you feel like you were charged tax by mistake, you will need to contact the customs office nearest you.

Here's the contact info for the various offices, taken from the meches website. I couldn't find any email addresses, sorry.

Tel Aviv
Derech HaHagana 137, Yad Eliyahu, Tel Aviv
Tel: 03-942-1730
Fax: 03-942-1733

Jerusalem
Mercaz Shatner, Givat Shaul B, Jerusalem 91999
Tel: 02-652-6193
Fax: 02-651-1589

Haifa
Sderot Pal Yam 19, Shakmona, POB 245, Haifa 31999
Tel: 04-866-4130
Fax: 04-666-9803

Eilat
Central Post Office, The Red Mall, Eilat 83100
Tel: 08-632-6476
Fax: 08-866-9702

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 from the tax-man.

If you're not sure where to start shopping online, I've compiled a list of websites that offer low cost shipping to Israel! Please be sure to check it out! Let's help open Israel's marketplace and bring down our cost of living without bringing down our standard of living!

Some of my favorite websites to shop from are:

Amazon ~ iHerb ~ AliExpress ~ eBay ~ Book Depository

(Amazon is particularly good because they collect taxes up front and basically guarantee that you won't be charged anything more than what they've collected!)

Join my WhatsApp group and my Facebook Group where I'll be posting my favorite deals!

*Examples of EMS services - Express Mail, Fedex, UPS and other express delivery services. Sometimes DHL is EMS and sometimes it is not.

Water Prices Are Going Down!

Today, the government approved the reduction of water rates by an amount equal to the VAT (17%), as part of the effort to reduce the cost of basic necessities in Israel.

The reduction will apply to the amount of water that is considered "basic" - the first 3.5 cubes per person. Amounts used above that will be subject to higher rates.

Make sure your water bill reflects the correct number of people in your household. If it lists fewer people than it should, make sure to fix that right away.

 

PRICE UPDATE for price controlled foods

I'm sure you're familiar with the list of foods that price controlled in this country - for better or for worse, certain products have maximum prices set by the government.

--- Retrieved from http://www.kosherfrugal.com/2015/09/new-prices-for-price-controlled-breads.html ---


The list includes breads, milk, cheeses, eggs, salt, and more. If you regularly buy these products, it may save you money to buy the "price controlled" version. Usually other non-price controlled versions are sold, as well. Check and decide what works best for your family.

I wanted to let you all know thaton Oct 1, VAT went down 1%, from 18% to 17%, so the legal maximum prices have been updated to reflect that change.

Full list of Price Controlled Groceries

The price listed is the MAXIMUM price for the specified item - in theory, a store can discount it further, if they want to.
If a store is selling price controlled items for a higher price, they are in violation of the law. You can (and should) report these violations!

Here are the items that are supervised, and the maximum price to consumers:

(The prices shown below are for the entire country, excluding Eilat. Eilat is exempt from VAT, so prices there will be lower.)

Lechem Achid (I believe this is about 65% whole grain) - 750g loaf, 5.07 (was 5.11)
White bread, 750g loaf, 5.07 (was 5.11)
Challah or yeast cake, 500g, 5.11 (was 5.15)  (don't ask me what kind of yeast cake this is referring to, I have no idea!)
Lechem Achid, sliced and packaged, 750g, 7.02 (was 7.08)
White bread, sliced and packaged, 500g, 6.24 (was 6.29)
Regular Kitchen Salt, Fine Kitchen Salt, Fine Table Salt, and Coarse Table salt, 1 kg, 2.07, (was 2.09) 
3% milk, 1 liter, bag, 5.11  (was 5.15)
1% milk, 1 liter, bag, 4.76 (was 4.80)
3% milk, 1 liter, carton, 5.90 (was 5.95) 
1% milk, 1 liter, carton, 5.55 (was 5.60)
Eshel, 4.5% fat, 200ml, 1.59 (was 1.60)  
Gil, 3% fat, 200ml,  1.44 (was 1.45) 
Sour Cream, 15% fat, 200ml, 2.28 (was 2.30)
Sweet Cream, 38% fat, 250ml, 6.20 (was 6.25)  
Butter, regular, 100g, 3.92 (was 3.95) 
Emek Cheese (at the cheese counter), per kg, 42.93 (was 43.30)  
Gilboa Cheese (at the cheese counter), per kg, 40.80 (was 41.14) 
Gvinah Levana (white cheese), 5% fat, 250g, 4.80 (was 4.85)  XL eggs, regular, 1 dozen, 13.10 (was 13.20)
L eggs, regular, 1 dozen, 12.00 (was 12.10)
M eggs, regular, 1 dozen, 11.10 (was 11.20)
 
Do you ever see stores overcharging? Have you ever made a report to the supervisory board?

VAT has gone up

Okay everyone. The day has arrived. When you go out to buy something, your purchase will be subject to the new VAT rate. And that is now 18%..

The new rate even applies to price controlled items, so do not be shocked to see higher prices even on those items. You can be dismayed, but don't say I didn't warn you!

Here are some of the new rates for price controlled items, when the full list is published, I will update!
(It's 2 am and I cannot do math at 2 am, sorry)

Milk - 1 liter bag, 3% - 5.28
Milk - 1 liter bag, 1% - 4.95
Milk - 1 liter carton, 3% - 6.54
Milk - 1 liter carton. 1% - 6.11
Eshel - 200ml cup, 4.5% fat - 1.66
Gil - 200 ml cup, 3% fat - 1.52
Sour cream - 200 ml cup - 15% fat - 2.47
Butter - 100g - 4.08
Emek cheese - 45.96/kg
Gilboa cheese - 43.72/kg

Eggs:
size M - 11.90/doz
size L - 12.90/doz
size XL - 14.00/doz