Israel VAT Exemption on Personal Imports Drops to $75: What Australian Shippers Need to Know

On 2 June 2026, the Israeli Ministry of Finance implemented a significant policy change by reducing the Israel VAT exemption on personal imports for business-to-consumer (B2C) shipments from USD 130 to USD 75. The change applies to B2C shipments from the rest of the world into Israel.

This article explains the revised VAT tiers, which shipment values are now affected, the documentation Australian shippers must provide to avoid customs clearance delays, and where Australian businesses can book international courier services to Israel.

   

        

   

     

Book International Courier Shipments to Israel

     

Compare and book international courier services to Israel for your next B2C consignment through Couriers & Freight.

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Israel VAT Exemption on Personal Imports: Summary

• 2 June 2026 marks the date the Israeli Ministry of Finance reduced the B2C VAT exemption threshold from USD 130 to USD 75.
• USD 75 to under USD 130 shipments are now subject to VAT upon import, while customs duty and purchase tax remain exempt.
• USD 130 to under USD 500 shipments continue to attract VAT upon import, while customs duty and purchase tax remain exempt.
• Shipments above USD 500 are subject to VAT, customs import duties, and purchase tax upon import.
• Applies only to B2C personal imports into Israel and does not affect commercial B2B shipments.

Australian businesses sending B2C parcels to Israel can review the latest documentation requirements and booking options through Couriers & Freight before their next shipment.

How Israel's Revised VAT Threshold Affects B2C Imports

Effective 2 June 2026, the Israeli Ministry of Finance reduced the VAT exemption threshold for B2C imports into Israel from USD 130 to USD 75. B2C shipments now fall into one of four value bands, with VAT, customs duty and purchase tax applied according to the declared value of the goods. 

Israel B2C Import VAT Tiers as of 2 June 2026

Rules That Apply Under the New Threshold

Calculation Base

The USD 75 threshold applies only to the declared value of the goods. Shipping, insurance and other applicable costs are excluded from the calculation, provided they are itemised separately on the invoice.

B2C Only

The revised VAT exemption threshold applies only to personal (B2C) imports into Israel. Commercial B2B shipments are not affected by this change.

Customs Charges Still Apply

The exemption applies only to VAT. Customs clearance and related service charges may still apply regardless of shipment value. Shippers can also refer to the Israel Tax Authority for official customs and tax information relating to imports into Israel.

What Australian Shippers Must Include on Every Consignment to Israel

Carriers now require additional shipper-provided information for all B2C consignments to Israel to support customs assessment under the revised VAT rules.

1. Provide accurate and complete goods descriptions, including the actual declared value and the relevant HS codes. Businesses unfamiliar with HS classification can refer to the World Customs Organisation for general information on the Harmonised System. 
2. Provide the receiver's correct full name and delivery address.
3. Provide a valid receiver email address and mobile phone number.
4. Provide the receiver's identification number.
5. Submit complete and accurate Commercial or Proforma Invoice data electronically via the carrier's shipping platform for customs clearance.

Book International Courier Services to Israel Through Couriers & Freight

Australian businesses sending B2C parcels to Israel can compare international courier options and obtain an international courier quote through the Couriers & Freight platform. Australian exporters can also consult the Australian Border Force for general export guidance before preparing international consignments. 

Get a quote or explore your international courier options through Couriers & Freight's International Shipping service. 

   

        

   

     

Book International Courier Shipments to Israel

     

Compare and book international courier services to Israel for your next B2C consignment through Couriers & Freight.

     Get a Quote Now