Israel Import Tax & Duty-Free Allowance Thresholds: A Guide

The de minimis value in Israel is the threshold below which no duty or taxes, including VAT at a rate of 17%, are applied to imported goods. This value is set to help facilitate low-value shipments, particularly for e-commerce and small packages. As of the last update, the de minimis threshold in Israel is approximately 175 ILS for goods, below which shipments are generally exempt from duty and VAT. However, it's crucial to note that this threshold can change, and not all goods may qualify due to specific regulations or restrictions.

Duty and VAT at 17% apply when the value of the imported goods exceeds the de minimis threshold of 175 ILS. The duty rate varies by product, and importers must pay these charges to clear their shipments through customs. Understanding the de minimis rule is essential for importers to correctly calculate the total landed cost of their goods, including any applicable duties and the 17% VAT. Importers should also be aware of any additional fees, such as customs clearance fees, that may apply to their shipments.

There are notable exceptions to the de minimis rule in Israel. Certain goods, regardless of their value, may be subject to duty and taxes, including the 17% VAT. These can include restricted or prohibited items, goods from specific countries subject to trade restrictions, and certain types of products that are always dutiable, such as alcohol and tobacco. Importers must ensure they are aware of these exceptions to avoid unexpected costs or delays in the clearance of their shipments.

The de minimis threshold has a significant impact on small e-commerce shipments. For shipments valued at or below 175 ILS, the absence of duty and 17% VAT can make these purchases more attractive to consumers, potentially boosting sales for e-commerce businesses. However, for shipments exceeding this threshold, the application of duty, which varies by product, and VAT can increase the final cost to the consumer, affecting demand. E-commerce sellers must factor these costs into their pricing strategies to remain competitive in the Israeli market.