How is import tax calculated in Israel?

Israeli customs taxes the CIF value (Cost + Insurance + Freight). On that base it charges customs duty (the rate depends on the product and any free-trade agreement), then any purchase tax (mas knia), and finally 18% VAT (ma'am) on the duty-and-purchase-tax-inclusive value. The calculator layers these in the correct order.

What is the de minimis threshold for Israel?

Personal imports up to roughly USD 75 are generally exempt from customs duty and VAT, and there is a higher ceiling (around USD 500) below which duty (but not always VAT) is waived for personal shipments. This tool lets you set the de minimis value so small parcels show zero or reduced tax, matching Israeli personal-import rules.

Why is VAT applied after duty?

Israeli VAT (ma'am, currently 18%) is charged on the value including customs duty and purchase tax, not on the bare goods value. So VAT is layered last, on top of CIF plus duty plus purchase tax. That is why the same VAT rate yields a higher shekel amount once duty applies.

What is purchase tax (mas knia)?

Purchase tax is an extra excise Israel levies on specific categories such as vehicles, alcohol, tobacco and some electronics, on top of customs duty. Most everyday goods have no purchase tax, so leave it at zero unless your product is in a taxed category.

Does this give an exact customs bill?

No. Real Israeli clearance depends on the precise HS classification, the country of origin and applicable trade agreements, handling and broker fees, and currency conversion at the customs rate. This is a planning estimate — confirm with a customs broker or the Israel Tax Authority before relying on it.

Israel Import Duty & Customs Calculator

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This Israel import duty and customs calculator estimates the full landed cost of goods entering Israel. From a CIF value it applies the de minimis exemption, then customs duty, any purchase tax (mas knia), and finally 18% VAT (ma’am) in the correct order to show the total you will pay.

How it works

Israeli customs taxes the CIF value — Cost + Insurance + Freight — and layers charges in sequence:

CIF        = goods + insurance + freight
(if CIF ≤ de minimis → all import tax = 0)
duty       = CIF × duty%
purchase   = (CIF + duty) × purchaseTax%
VAT base   = CIF + duty + purchase
VAT (ma'am)= VAT base × 18%
landed     = CIF + duty + purchase + VAT

VAT is deliberately applied last, on the duty- and purchase-tax-inclusive value, so it compounds on the earlier charges. Small personal parcels below the de minimis threshold (around USD 75) clear free of duty and VAT.

Example

Import goods worth ₪3,000 with ₪300 freight and ₪50 insurance — a CIF of ₪3,350. With 0% duty (common under trade agreements), no purchase tax and 18% VAT, the tax is ₪603 and the landed cost is ₪3,953. Add a 12% duty and the duty plus the now-higher VAT push the landed cost above ₪4,400.

Notes

This is a planning estimate. Real clearance depends on the exact HS code, country of origin and free-trade agreement, broker and handling fees, and the customs exchange rate. Purchase tax applies only to specific categories (vehicles, alcohol, tobacco, some electronics). Confirm with a customs broker or the Israel Tax Authority before relying on the figure.