Dec 5, 2011
Israel Raises Threshold For Applying Customs Taxes For Goods Bought Via Internet
Great news for people in Israel who buy things on the Internet and want to ship directly to Israel (rather than shipping in the USA, for example, and asking someone to bring it in for you - flights only allow one piece of luggage as part of the ticket price, so it is even more difficult now to ask people to bring things for you).
It used to be that when getting a shipment to Israel, it was hit or miss whether the package would get stopped and tagged for customs duties and taxes. Eventually they formalized a rule that anything over $50 in value would get stopped and tagged with taxes and duties.
While it still might have been worth buying abroad on the Internet, and paying the fees, as some items are either difficult to find in Israel or even more expensive than abroad even after paying the taxes, it was still frustrating. Packages might get stopped and delays in delivery would occur. Or, you didn't really know how much you would end up paying. Or, maybe you ordered an item that is difficult to find in Israel but at the final price including the extra duties you might not have considered it worth buying.
Yesterday the Israeli government approved an increase in the threshold for applying such taxes and duties. Instead of the $50 threshold (about 180 NIS), it is now 1200 NIS (about $320).
That means you can now order, without concern that you will end up paying a serious percentage more, all those goods you have wanted to order, such as books from Amazon
, or your Vibram Bikila barefoot running shoes or whatever else you like to order from abroad. I guess anything that has import taxes, such as electronics or whatnot, will still have such duties applied, but on items where that is not an issue, there will be no need for concern about added VAT or customs, at least not until passing the threshold.
Not only that, but the other benefit, and this was the intended benefit for which the threshold was raised, is that the government expects raising the threshold will "force" local businesses to lower their prices. Now they will be competing not just with other local businesses, but with Internet based businesses as well!
It used to be that when getting a shipment to Israel, it was hit or miss whether the package would get stopped and tagged for customs duties and taxes. Eventually they formalized a rule that anything over $50 in value would get stopped and tagged with taxes and duties.
While it still might have been worth buying abroad on the Internet, and paying the fees, as some items are either difficult to find in Israel or even more expensive than abroad even after paying the taxes, it was still frustrating. Packages might get stopped and delays in delivery would occur. Or, you didn't really know how much you would end up paying. Or, maybe you ordered an item that is difficult to find in Israel but at the final price including the extra duties you might not have considered it worth buying.
Yesterday the Israeli government approved an increase in the threshold for applying such taxes and duties. Instead of the $50 threshold (about 180 NIS), it is now 1200 NIS (about $320).
That means you can now order, without concern that you will end up paying a serious percentage more, all those goods you have wanted to order, such as books from Amazon
, or your Vibram Bikila barefoot running shoes or whatever else you like to order from abroad. I guess anything that has import taxes, such as electronics or whatnot, will still have such duties applied, but on items where that is not an issue, there will be no need for concern about added VAT or customs, at least not until passing the threshold.Not only that, but the other benefit, and this was the intended benefit for which the threshold was raised, is that the government expects raising the threshold will "force" local businesses to lower their prices. Now they will be competing not just with other local businesses, but with Internet based businesses as well!
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Now THAT's news!
ReplyDeleteWhen does this take effect? Any idea if it includes packages from family too?
I think it takes effect immediately, though I am not sure.
ReplyDeleteI dont know about packages, but I would assume it applies to any package coming in. I would guess it must have a stated value on it, otherwise the customs people might open it and assign their own value, but lets say a case where it's obviously below the threshold, it should probably apply as well.
Everything coming in should have paperwork stating a value. When the package is large (or perhaps the description of contents interesting), customs opens it to verify.
ReplyDeleteand of course if imma sends you a sweater, make sure that she cuts off the price tags, lest the post office charge you the tax for importing new clothes.
ReplyDeleter u sure this is not just an exemption on sales tax for internet purchases inside israel??
ReplyDeleter u sure this is not just an exemption on sales tax for internet purchases inside israel??
ReplyDeletedoes that mean that clothing purchases, such as from GAP will be free from duty or VAT if under the threshold?
ReplyDeletebz - yes. here is a link to a jpost article that makes it clearer.. http://www.jpost.com/Business/BusinessNews/Article.aspx?id=248112
ReplyDeleteanon - - thats exactly what it sounds like
ReplyDeleteAs of now you are not able to buy electronics on Amazon and have them shipped. Even if they're less than $320
ReplyDeleteis that because of taxes or because they dont want to ship to Israel? Amazon, like many other internet sellers, always had some products they would not ship to Israel. I suspect it is too risky for them, as they are more expensive items and anybody could simply reject the shipment or they could easily get lost in transit..
ReplyDeleteIt'd be great if you could actually include a source for these things.
ReplyDeletesorry. i have to remember to do that. it was in every single newspaper and talked about on every radio station the day it happened, which was the day i wrote about it.
ReplyDeletenow, 3 weeks later, one would have to do a google search. sorry
After reading this post, I made a purchase of clothes which came to under 1200 NIS. I am now holding a post office slip with a demand for 659.20 NIS in meches. Any suggestions?
ReplyDeleteI dont know. I would suggest looking into more details of what precisely is included in the exemption and what is not (I remember the term "hundreds of items" being used, but that still does not include everything.
ReplyDeleteAlso, find otu exactly if the law is already in effect or when it will be.
Third, just because something was signed into law does not mean every clerk is aware of it. Maybe it can be challenged. That is if it is really already in effect and if what you bought qualifies for the exemption.
Good luck.
I have now spoken to Meches, and they say that the law is not yet in effect. Your article says "That means you can now order, without concern...". This is clearly not correct, and has cost me a lot of money.
ReplyDeletethat's upsetting.
ReplyDeleteI also recently ordered things and am waiting for a couple of packages. I hope I don't get hit with extra meches payments (though I didnt order as much as you, it was still above the old threshold)
wonder when does the law comes into power?
ReplyDelete