Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 12/10/2019

Israel is a highly competitive market and price is a key factor driving Israeli corporate and consumer purchasing decisions. Presenting U.S. products as high quality at fair market prices is a good long-term sales strategy. Distributors prefer exclusivity and annual sales targets should beincorporated into representation contracts.

Israel’s VAT is 17% and charged on virtually all services and products sold in Israel, including imports (except fresh fruits and vegetables). The VAT on imports is levied on the CIF (Cost, Insurance and Freight) landed cost plus purchase tax. VAT is recovered by the importer upon resale of the goods and is ultimately paid by the consumer.

Israel levies purchase taxes on many consumer goods. The Government of Israel has reduced or eliminated the purchase tax on more than six hundred items since 2000, including televisions, washing machines, electrical appliances, and cosmetics. The purchase tax on standard vehicles with combustion engines is 83%, hybrids, 30%, and electric vehicles 10%.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.