Israeli personal-import tax

Read references/israel-import-tax.md first. It has the current figures, how they were verified, and the history of the threshold, which has changed several times since late 2025.

Before quoting any figure, check that the threshold has not moved since the date in the reference. Search פטור ממע"מ יבוא אישי or Israel VAT exemption personal imports threshold for news newer than that date. If the figure has changed, use the new one and say so.

The two rules that cause most mistakes

1. The threshold applies to goods only; the tax applies to the whole cost.

   • Threshold test: the exemption is tested on the goods value excluding shipping.
   • Tax base: once it is crossed, VAT is charged on goods + shipping + insurance (CIF).

   Always report the two figures separately.

2. It is a cliff, not a ramp. Crossing the threshold puts VAT on the whole shipment, not just the excess. At $75 and 18%: $74 of goods costs ~$74, but $76 costs ~$76 × 1.18 ≈ $89.70.

A third rule: the exemption is per shipment, not per item. Three $60 items in one order are $180 of goods, and fully taxable.

Inputs

Accept whatever the user has:

• pasted listing text or a cart;
• a list of title, price, currency, qty, shipping;
• screenshots described in words.

You cannot open the user's cart or log in to their account. Work from what you are given. If a price is a range (₪10–₪25), ask which variant they want. The low end is only the cheapest variant.

Procedure

1. FX rate. The threshold is in USD. Convert ILS prices with today's rate, from the Bank of Israel representative rate or an ECB-based source. Print the rate, its source and the date. If you cannot get a rate, stop and say so. Do not guess.
2. Goods value: the sum of unit price × qty in USD. Keep shipping separate.

3. Classify the basket:

   Goods (USD)	Status	Meaning
   ≤ 80% of the threshold (≤ $60 at $75)	GREEN	Comfortably exempt
   80% up to the threshold	AMBER	Exempt. Report the headroom (threshold − goods)
   Over the threshold, up to $500	RED	VAT on the whole CIF value. No customs duty. Purchase tax only on goods that carry it (e.g. TVs, car parts).
   Over $500	RED+	VAT plus possible customs duty and purchase tax, by product type. Out of scope; point to a customs broker.

4. Landed cost:
   • Exempt: goods + shipping.
   • Taxed: (goods + shipping) × (1 + VAT rate). Carrier handling or clearance fees come on top; they are not modelled here.
5. On RED, quantify and suggest:
   • how far over the line the basket is, and the VAT that triggers;
   • which low-value items could be dropped to get back under, and the saving;
   • splitting into separate orders, each under the line. This is legitimate, but see the 72-hour rule below.

Hunting for tax-free items

For "find me X that lands tax-free", use web search or the store's own search, or work from listings the user pastes. Use tighter working lines than the law:

Classify each candidate:

• CLEAR if landed is under $70.
• TIGHT if landed is $70–75. Show the USD/ILS rate at which it would cross the line.
• OVER if landed is $75 or more.

Rank candidates by headroom, not by price. Every qualifying item qualifies on its own. Say so in the output whenever you list more than one.

Output

Import tax check — threshold $<75> goods value (verified <date>), VAT <18>%
FX: 1 USD = ₪<rate> (<source>, <date>)

Items: <n>   Goods: $<x> (₪<y>)   Shipping: $<s>
Status: <GREEN | AMBER | RED | RED+>
<one-line verdict, e.g. "AMBER — $6.20 headroom; one more ~$6 item puts VAT on the whole order">

Landed estimate: goods $<x> + shipping $<s> + VAT $<v> = $<total> (₪<total_ils>)
<RED: what to drop or how to split>

Caveats to pass on

• Some stores collect Israeli VAT at checkout. AliExpress and others sometimes do. If the checkout shows a tax line, do not add VAT again.
• Split orders are combined under a 72-hour rule. Two or more parcels from the same supplier to the same customer within 72 hours are treated as one split shipment, and taxed on their total value (Kol Zchut, 2026-10-16). Splitting only helps across different suppliers, or with more than 72 hours between shipments. Consolidated lanes such as AliExpress Choice may also ship several "orders" as one parcel. Never promise that a split will work.
• Shipping must be separable. If the invoice does not show shipping separately from the goods, the whole amount is tested against the threshold.
• Promotional prices expire. Assess on what the user will actually pay.
• Bulk-quantity tiers are a common way to cross the line unnoticed. Check the tier total, not the unit price.
• Out of scope:
  • Advice on undervaluing, misdeclaring or labelling goods as gifts. Do not give it.
  • Vehicles and other special regimes.
  • A guaranteed customs outcome. This is an estimate against published thresholds.
• For whether the item will work in Israel at all (plug, voltage, restricted categories), see the israel-electrical-compatibility skill.