Visitors to Israel can now get back the value-added tax (VAT) they pay on purchases made during their Israel stay. The VAT exemption applies to purchased goods exceeding US$200, or US$100 in shops participating in the VAT refund program.
To facilitate refunds, visitors should obtain a special invoice, which is sealed in a bag with the goods, at the point of purchase. On arrival at Ben Gurion International Airport, visitors seeking refunds should go directly to the Change Place booth in the Departure Lounge (before they go through security and ticket/baggage check-in) and present their sealed bags at the VAT refund centre. After inspection of the packages, officials will return the VAT in any currency, less a commission. Refunds can also be sent to a foreign address.
The 17% VAT does not apply to most tourist-related services such as accommodation and car rentals. It is usually included in the purchase price of most other goods and services.
