Amazon US: Price Before Tax
In the United States, sales tax rates vary by state. Because of this, product prices listed on Amazon.com are shown before any taxes are applied.
- Shipping to Israel: Amazon calculates and appends the relevant Israeli import taxes (18% VAT and customs if applicable) only at the final checkout screen after you select your shipping address.
- Tax Threshold: Israeli import taxes are collected only if the total value of the goods in your cart exceeds $75 (excluding shipping charges).
Amazon Europe & Japan: VAT Deduction
How Local VAT Deduction Works
On Amazon's European sites (Germany, UK, France, Italy, Spain) and Amazon Japan, listed prices include local value-added taxes (usually between 15% and 22%).
- Export Exemption: Since the item is being exported outside of the EU/Japan to Israel, you are exempt from their domestic tax. When you proceed to checkout and select your Israeli shipping address, Amazon automatically deducts this local VAT from the product's price.
Falling Below the Tax Threshold ($75)
This deduction can save you money in two ways:
- Practical Example: Say you find a hard drive on Amazon Germany listed for €77 (which is above the equivalent $75 limit of approx. €70).
- At Checkout: After German VAT deduction, the price of the drive drops to €64.71. Because this new price is below the $75 threshold, the package is completely exempt from Israeli VAT! You pay only the reduced price of the item plus shipping.
Import Tax Rules of Thumb on Amazon
Threshold Based on Goods Value
The $75 tax threshold is evaluated strictly on the cost of the products (including item discounts), excluding shipping and insurance fees, provided they are itemized separately.
Order Consolidation
Placing multiple orders on the same day can lead to Amazon consolidating them into a single shipment, potentially pushing the combined value over $75.
- Tip: Wait at least 48 hours between placing orders to ensure they ship in separate packages.
Prepaid Import Deposit
Purchasing items shipped by Amazon (Fulfilled by Amazon) utilizes the 'Import Fees Deposit' model. If actual taxes are lower, you get a refund. If they are higher, Amazon absorbs the difference.
Tip: when ordering from Amazon Europe or Japan, checkout prices often drop below the tax threshold due to domestic VAT deduction. Always check the final checkout total!