Under Israeli law, any product imported into the country valued at $75 or more is subject to Value Added Tax (VAT). The VAT rate typically starts at 18%, although the exact amount can vary depending on the product.
When shopping on Amazon, things can get a bit tricky. VAT is applied to the total order value, regardless of how many items are included. This means that sometimes it might make sense to split up your order into smaller shipments to avoid paying VAT on items valued under $75.
It gets even more complicated when coupons come into play. For example (see image below), if a product is priced at $75.99 and you apply a $10 coupon, the discount is only applied at checkout. Since the VAT is calculated based on the pre-discount price, the order will still be subject to VAT, even though the final price is reduced.
Even with VAT applied, it’s important to keep in mind that you’re still likely getting a good deal, but it’s something to be aware of when shopping.
As VAT policies can change frequently, we’ll be posting updates here to keep you informed.
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Happy Shopping!
