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Customs & Taxes for Online Shopping: The Complete Guide

06/05/2026
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Everything you need to know about import taxes, the $75 VAT exemption, calculating costs, courier fees, and contacting customs in Israel.

Bottom Line

This guide summarizes import tax laws for Israel: complete exemption up to $75 (except tobacco/alcohol), VAT (18%) and purchase tax on packages between $75 and $500, and customs duty above $500. Note that express courier fees can significantly increase costs.

Tax Thresholds

Full Exemption (Up to $75)

Packages valued up to $75 (value of goods only, excluding shipping and insurance) are completely exempt from import taxes.

  • Exceptions: Exemption does not apply to tobacco, cigarettes, and alcohol.
  • Consolidation: Two or more packages from the same seller to the same recipient arriving within 72 hours are treated as a single shipment for tax calculations.

VAT & Purchase Tax ($75-$500)

Packages valued between $75 and $500 are exempt from customs duty, but subject to:

  • VAT (MAAM): 18% calculated on the total transaction amount (goods value + shipping costs).
  • Purchase Tax (mas konya): Applies to specific product categories (e.g., car spare parts, alcohol, tobacco).

Key Shopping Recommendations

Accurate Value Declaration

The importer bears legal responsibility for the declared value. Under-declaring can lead to double taxation, heavy fines, or confiscation by customs.

  • Tip: Ask the seller to state the actual item value: Please declare the real price and product.

Standard vs. Express Shipping

Standard mail (Israel Post) undergoes random customs inspections. Express couriers (DHL, FedEx, UPS) clear every package through customs systematically.

  • Warning: Express couriers charge high clearance, handling, and storage fees, which can make a bargain purchase expensive.

Tax Relief Categories

The Israel Tax Authority offers import tax reductions or exemptions for new immigrants (Olim Hadashim), returning residents, returning students, and active-duty soldiers.

  • Details: Check eligibility criteria and submit required documentation via the Tax Authority portal to claim these benefits.

Customs Contacts & Appeals

If you have been overcharged or want to contest the customs valuation of your package, you can file an appeal online or contact the customs administration directly.

  • Appeal Form: Submit the tax assessment dispute form before releasing the package from the post office.
  • Customs Inquiry Fax: 03-9421736
  • Contact Email: [email protected] or [email protected]
  • Tel-Aviv Customs Office: 03-9421730
  • Customs Status Tracking: 03-6303383 (Shulamit)
  • Israel Post Customer Service: 02-9290079

Tip: prefer standard mail for small packages and always declare correct values to avoid customs penalty fees!