An important summary from Kosherfrugal.com
Shopping online and wondering what to expect regarding taxes and fees? This guide will help you understand the basics that apply to residents of Israel when shopping online from overseas. Most of us shop this way to save money, so who wants a tax bill surprise when the order gets here? This post will help you avoid a tax bill (legally, of course!).
Here's the rundown (the full regulations can be found on the Israel tax authority's site)
Your purchase, no matter what currency it was in, will be translated into US Dollars by the tax authority to determine if it's taxable:
Purchases up to $75 - no taxes
Purchases above $75 up to $500 - no customs taxes, but VAT will apply in most cases (17% currently), and Purchase Tax (variable rates) may apply (purchase tax applies to very few items at this point!)
Purchases over $500 - subject to all taxes (VAT , Purchase Tax (if applicable), and Customs Tax)
Please take note that purchases of up to $75 will be subject to customs clearance fees if they arrive using an EMS service* (about 35 shekels), and if the value of the purchase is higher, the customs clearance fee can be higher as well.
Please be aware that the purchase price only (not purchase + shipping) will determine whether an item will be taxed. Once it is found to be taxable, however, applicable taxes will be calculated on the purchase price + the shipping price.
One more important point: If you order multiple orders from the same seller and they arrive within 72 hours of each other, customs may combine the orders and treat them as one purchase for tax purposes. They may not. But it is a possibility you should be aware of before you place multiple orders.
If your order is stuck in customs, or if you feel like you were charged tax by mistake, you will need to contact the customs office nearest you.
Here's the contact info for the various offices, taken from the meches website. I couldn't find any email addresses, sorry.
Tel Aviv
Derech HaHagana 137, Yad Eliyahu, Tel Aviv
Tel: 03-942-1730
Fax: 03-942-1733
Jerusalem
Mercaz Shatner, Givat Shaul B, Jerusalem 91999
Tel: 02-652-6193
Fax: 02-651-1589
Haifa
Sderot Pal Yam 19, Shakmona, POB 245, Haifa 31999
Tel: 04-866-4130
Fax: 04-666-9803
Eilat
Central Post Office, The Red Mall, Eilat 83100
Tel: 08-632-6476
Fax: 08-866-9702
Some of these regulations are different from what some people seem to believe, so please refer back to this guide if you are about to place an order and you're not sure what to expect from the tax-man.
If you're not sure where to start shopping online, I've compiled a list of websites that offer low cost shipping to Israel! Please be sure to check it out! Let's help open Israel's marketplace and bring down our cost of living without bringing down our standard of living!
Full Story (Kosherfrugal.com)