Changing the Customs Limit for the Israeli Market

For years, Israeli online shoppers have operated under a strict $75 ceiling to avoid paying extra taxes. If you bought sneakers for $80, you suddenly faced an extra charge that often made the purchase unworthy. But big changes are on the horizon. The conversation around raising the VAT exemption threshold has finally turned into action, promising a new era for personal imports and online shopping.

This change isn't just about government policy; it's about your wallet. Let's dive into how the proposed shift in Israeli tax law will impact your shopping habits and how Meest Shopping can help you maximize these benefits.

What does the new VAT limit of $150 mean?

The most significant update in the customs regulation is the shift in the VAT exemption threshold. Previously, the limit sat at $75. Any package value exceeding this amount required the recipient to pay 18% VAT (Value Added Tax). This often discouraged consumers from buying mid–range items from international retailers. As of December 24, 2025, the exemption threshold has been raised to $150.

Under the new proposal, this threshold is increasing to a $150 threshold. This effectively doubles your purchasing power the penalty of additional taxation. This tax policy change means that for products valued between $75 and $150, you will no longer have to pay that extra 18% to the state.

For the average consumer, this translates to immediate savings. If you order products to Israel from abroad within this price range, you are essentially getting an automatic discount compared to previous regulations. This change aims to lower the cost of living by encouraging competition with local market prices, which are often significantly higher due to import duties and local markups.

How much can you save thanks to the new limit?

The financial impact of this custom limit adjustment is substantial. We aren't just talking about a few cents; we are looking at consumer savings that can reach dozens of shekels on each individual order. Over a year, this could add up to hundreds, if not thousands, of shekels for an average family.

Let's look at a practical example of VAT savings. Imagine you want to buy a pair of high–quality headphones priced at $140.

• Old Rules: You would pay the $140 price plus 18% VAT (approx. $25.20), bringing your total to nearly $165.20.
• New Rules: You pay $140. That is a direct saving of about $25 (approx. 90–95 NIS depending on exchange rates).

This price decrease applies to every package under the $150 threshold. If a family orders clothes, school supplies, and gadgets throughout the year, the save on VAT accumulates rapidly. It empowers you to buy higher quality goods that were previously just out of reach because of the added tax burden.

What categories of goods and brands from online shopping will now be profitable to order?

The fashion industry is set to gain the most from this ecommerce customs limit update. Previously, Israeli consumers often hesitated to order branded shoes, premium denim, or winter coats due to concerns about crossing the $75 line. With the threshold now increased, these barriers are easing, making international purchases significantly more attractive.

Products in the $90–140 price range are becoming far more accessible. This is the "sweet spot" for many popular international brands. Here is where you will see the most benefit:

• Footwear: Running shoes and designer sneakers often cost between $100 and $130. These are now VAT–free.
• Outerwear: Quality jackets and coats from brands like Columbia or North Face often fall into this bracket.
• Electronics: Mid–range gadgets like high–end webcams, premium gaming mice, and quality headphones often sit right above the old $75 limit.
• Home Goods: Premium bedding, small kitchen appliances, and decor items from sites like Amazon or AliExpress / international e–commerce platforms.
• Clothing and Accessories: High–end fashion items like designer handbags, luxury watches, and high–quality shoes can also be found at discounted prices on online platforms. Websites like The RealReal offer authentic pre–owned designer items at a fraction of the original cost.
• Groceries: Many online grocery stores offer discounts for bulk purchases or have special promotions on certain items. You can also use coupon sites or loyalty programs to save even more money.

Top American and Europen Online Stores for Online Shopping

These online stores provide access to high–quality American brands and are an excellent choice for maximizing the customs limit and VAT exemption benefits.

Many sought–after U.S. and European online stores don't offer direct international shipping to Israel, but with Meest Shopping, Israeli shoppers can enjoy access to their favorite brands and take full advantage of the new $150 customs limit. Purchases madethrough Meest Shopping's virtual addresses allow you to shop as if you were located in the USA or Europe, unlocking more options and even greater savings. For full instructions on how to use this service, visit this guide.

Here are some top brands and online stores in the USA you can shop from using Meest Shopping:

1. Ralph Lauren – A go–to for premium fashion, accessories, and classic American style.
2. Tommy Hilfiger – Offers a large selection of iconic American apparel and footwear.
3. Victoria’s Secret – A favorite for lingerie, sleepwear, and beauty products.
4. Lululemon – Premier source for athletic wear and yoga apparel.
5. Michael Kors – Widely recognized for handbags, accessories, and designer fashion.
6. Levi’s– Famous for jeans and timeless denim apparel.
7. Lacoste – Shop classic polos, sportswear, and footwear.
8. White Fox Boutique – Trendy women’s fashion and statement pieces.
9. Uniqlo – Popular for affordable, high–quality basics and innovative apparel.
10. Calvin Klein – Well-known for underwear, jeans, and modern, minimalist styles.
11. H&M – A worldwide favorite for affordable and fashionable clothing.
12. Mango – Offers chic, modern fashion for men and women.
13. Columbia Sportswear – Leading brand for outdoor gear, jackets, and athletic apparel.
14. The North Face – Specializes in outerwear, equipment, and sportswear for all seasons.
15. Zappos – Top destination for shoes, clothing, and accessories with excellent customer service.
16. GUESS – Famous for trendy apparel, bags, and accessories.
17. Bloomingdale’s – Premium department store featuring designer brands and luxury items.
18. BABYBOO, Urban Outfitters, Alo, OYSHO, Camper, Billabong, Zappos, Guess, Massimo Dutti, Carter's, HUGO BOSS, O bag, ARKET, YOOX, Macy's and many others.

Important Advice: Some U.S. online stores block access to their websites for users outside the United States. You can easily bypass this restriction using a VPN with an American IP address.

Not only are you limited to U.S. online shopping – through Meest Shopping, you also gain access to popular European stores by using a European virtual address, which becomes available after registration.

Ready to explore new stores and maximize your international shopping? Browse the full store catalog and sign up for Meest Shopping to get started!

Which products are exempted from VAT?

While the import rules and international shipping landscape is improving, it is crucial to understand that the exemption applies broadly but not universally.

Generally, almost all consumer goods for personal use that fall under the $150 threshold will benefit from VAT exemption usage. This includes clothing, footwear, toys, electronics, and housewares.

What is excluded?

Even with the new limit, certain items remain outside the scope of tax relief. These products are either subject to special regulations or specific taxes regardless of value:

• Alcohol: Beer, wine, and spirits are subject to high taxes and do not benefit from the personal import exemption in the same way standard goods do.
• Tobacco Products: Cigarettes, tobacco, and vaping products are heavily taxed and excluded.
• Vehicle Parts: Certain car parts, specifically safety components, may require standard approvals and taxation.
• Communications Equipment: Some devices require specific ministry approvals, though many standard consumer electronics are fine.

It is always wise to check if a specific sensitive product requires a permit from the Tax Authority before ordering.

Is the cost of delivery included in the calculation for the new limit of $150?

This is one of the most common questions regarding import tax and usually the trickiest part of customs limit calculations.

According to general Israeli tax law, the value of the package for tax purposes includes the cost of the item plus shipping and insurance (CIF – Cost, Insurance, and Freight). However, for the specific $75 exemption (and likely the $150 one), the tax authority often looks at the value of the goods themselves if the shipping cost is separated on the invoice.

Crucial Note: If the total value (goods + shipping) exceeds the threshold, taxes are calculated on the entire amount, including shipping. Therefore, shipping costs play a vital role.

If you buy a coat for $140 and the U.S. shipping cost of $20 is not listed separately on the invoice, the total declared value becomes $160. This puts the shipment over the $150 threshold, and VAT may be charged on the full amount. However, if the domestic U.S. shipping is shown separately on the invoice, only the $140 item value is counted. In that case, your purchase stays within the $150 limit, and VAT is not applied, since local shipping costs are not included in the shipment value.

Pro Tip: When shopping online, try to choose U.S. retailers that offer free shipping within the United States. After that, use Meest Shopping to forward your purchases to Israel. With Meest Shopping, you can easily manage all your shipments in one place, stay compliant with import regulations, and take advantage of competitive internationalshipping rates. To better plan your expenses, you can calculate the approximate delivery cost to Israel using the online calculator.

How to use the exemption properly?

To truly benefit from this customs regulation change, you need a strategy. Random buying can still lead to accidental tax charges. Here is how to organize your shopping list for maximum savings:

1. Track the Exchange Rate: The $150 limit is calculated in US Dollars. If you buy in Euros or Pounds, currency fluctuations can push a borderline purchase over the limit. Leave a safety margin (aim for $145 max).
2. Split Your Orders: If you have a cart worth $200, do not ship it all at once. Split it into two separate orders of $100 each.
3. Space Out Shipments: Please note that two or more packages shipped from the same supplier to the same customer within 72 hours may be treated as one split shipment, and import taxes may be calculated based on the combined value of all items.
4. Use Meest Shopping: This is your best tool for managing international purchases. Meest provides you with a local address in the US or Europe. You can order goods there, check their value, and decide when to forward them to Israel.

By using Meest Shopping, you gain control over the declaration and timing of your packages. This ensures you can utilize the VAT exemption to its fullest potential, helping you access global brands at local prices without the headache of unexpected fees.