Nov 11, 2014

Customs on Internet purchases slashed

Buying online is about to get cheaper in Israel..

According to Globes, Finance Minister Yair Lapid yesterday signed an order exempting personal imports from customs taxes for purchases up to a maximum of $500 (up from the previous exemption of up to $325).

VAT isn't being changed, and will continue to be tacked on to purchases above $75.

Lapid says this is another step in lowering the cost of living.

The exemption from customs will be applied as long as 3 conditions are met:
1. the import is done via mail messenger or airmail.
2. the product is meant for personal use (and not for re-sale)
3. the price of the product is not greater than $500

The exemption will not apply to tobacco or alcohol products. It will apply to the most common internet orders of clothes (normally having a 6% customs rate), shoes (12%), and cosmetics and toiletries (12%).

I expect that this will cause an increase of Internet purchases of small electronics - digital cameras, computer accessories, etc.

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3 comments:

  1. Hi,

    I just order a mobile phone from Aliexpress two days ago for 506$. Does it mean that I will have to pay taxes for it? How much am I supposed to pay?
    Thanks

    ReplyDelete
  2. you might, if they catch the package and are strict about the exact number. I dont know what customs are on cellphones, so I cannot answer the question. you can probably find out by looking on the meches authority website

    ReplyDelete