Israeli Registrations for Overseas VAT Refunds Double in Past Month, PassportCard Reports

PassportCard, Israel's leading travel insurance and relocation company, revealed a 100% increase in the number of Israelis registering for VAT refund services on purchases made abroad over the past month. This surge reflects a gradual shift in Israeli travelers' consumption habits and growing economic awareness, as reclaiming VAT abroad becomes a more integral part of their financial management during vacations. Despite this significant rise, the company notes that the number of users remains relatively low compared to the estimated one million Israelis traveling abroad during the summer holiday period. Consequently, Israeli travelers still leave over one billion shekels annually unclaimed in VAT refunds.

The new data is based on registrations for PassportCard's Tax Free service, which offers a digital, fast, and paperwork-free process for Israelis to reclaim VAT paid on foreign purchases. Greece leads the list of countries with the highest registration rates for VAT refunds, followed by Italy, Hungary, France, and Poland, where VAT rates range from 20% to 27%. PassportCard's data also shows that in Greece, VAT-eligible expenses such as clothing, cosmetics, and electronics account for approximately 45% of Israeli travelers' total spending. Spain and Poland also show high VAT-eligible spending, each at about 39% of total expenses.

Itzik Avksis, CEO of PassportCard Financial Services, commented on the trend: "Israeli awareness of their right to reclaim VAT paid abroad has significantly increased in recent months, and it is encouraging to see more travelers choosing to recover their entitled funds. However, the data clearly indicates there is still substantial spending for which travelers have not claimed refunds. We continue to work on making the process more accessible to ensure every shekel due to Israeli travelers reaches them."