Full coverage· Economy· Updated
Israeli Customer Charged VAT on Discounted Online Orders and Free Gifts
An Israeli customer, Yael, was charged VAT on two online orders despite their final cost being under $75, due to the seller declaring original prices and gift values on customs forms.
2 newsrooms · 1 language · sincePlus
What happened
- 01Customer Yael was charged VAT on two online orders under $75 due to seller declaring original prices.
- 02The Israeli Tax Authority initially denied Yael's VAT refund claim for discounted items and free gifts.
- 03The seller declared over $111 and over $91 for packages that cost Yael under $75 after discounts.
- 04Yael paid a total of 118 shekels in VAT for the two orders.
- 05A refund may be possible if Yael proves the discounts and gifts were part of a general promotion.
The Tax Authority initially denied her claim but later stated she could seek a refund if she proves the discounts and gifts were part of a general promotion. Yael paid a total of 118 shekels in VAT for the two orders and plans to resubmit her claim with evidence.
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