Israeli Import Tax Rules Make Splitting Online Orders Complex and Costly

In recent months, Israeli consumers ordering from abroad face renewed challenges due to changes in import tax exemption thresholds. The exemption limit for import taxes has reverted to $75 after a brief period at $130. Shipments with product values up to $75 are exempt from import taxes, but those valued between $75 and $500 are subject to 18% VAT and sometimes purchase tax, with shipping and insurance fees excluded from the product value calculation if listed separately.

This shift has raised the question of whether splitting orders into smaller packages is beneficial. While dividing purchases to keep each package under $75 can sometimes save on VAT, it is not always advantageous. If multiple packages come from the same seller within 72 hours, customs may treat them as a single shipment, combining their values and potentially triggering taxes. Additionally, extra shipping fees, handling charges, and complications with returns or warranties can negate any savings.

The article also highlights a broader global trend, noting that the European Union will impose a temporary €3 fee on small packages under €150 starting July 1, 2026, reflecting increased scrutiny on low-value online shipments worldwide. Although this EU rule does not apply to Israeli buyers, it signals a tightening of regulations globally.

Consumers are advised to carefully check the product value excluding shipping, verify seller identity, and consider timing before deciding to split orders. Declaring artificially low product values is risky, as customs authorities may reassess and impose taxes accordingly. Ultimately, splitting orders is only worthwhile if it genuinely keeps each package below the tax exemption threshold without incurring additional costs or logistical issues.

The article concludes that while buying from abroad can still be economical, shoppers must now pay closer attention to import rules, shipping costs, seller details, and timing to avoid unexpected expenses and complications.