Tax & Finance

Can tourists claim a VAT refund in Israel?

Q: Can tourists claim a VAT refund in Israel?

Yes. Tourists leaving Israel can reclaim the VAT paid on goods they bought to take home, provided each tax invoice meets a minimum amount and the purchase was made at a store in the refund scheme. VAT in Israel is 18% (2026), and the refund is processed at the departure point, mainly Ben Gurion Airport, through the licensed refund operator rather than the store. The refund applies to physical goods carried out of the country, not to hotels, restaurants, car rental, or most services. A handling commission is deducted, so the net refund is less than the full 18%.

      Yes. Tourists leaving Israel can reclaim the VAT paid on goods they bought to take home, provided each tax invoice meets a minimum amount and the purchase was made at a store in the refund scheme. VAT in Israel is 18% (2026), and the refund is processed at the departure point, mainly Ben Gurion Airport, through the licensed refund operator rather than the store. The refund applies to physical goods carried out of the country, not to hotels, restaurants, car rental, or most services. A handling commission is deducted, so the net refund is less than the full 18%.
    

The tourist VAT refund operates under the Value Added Tax Law 5736-1976 and its regulations, which zero-rate qualifying sales to tourists on export. In practice the shop charges VAT, issues a special tax invoice, and the tourist reclaims the VAT at the border after presenting the goods, the invoice, and a passport showing tourist status. A single invoice must exceed a set minimum, commonly around NIS 125, to qualify, and certain categories such as tobacco products are excluded. The refund is paid by the airport concession operator, in cash or to a card, net of a service fee. How VAT applies to visitors and non-residents more generally is set out in VAT in Israel for Foreigners.

To claim successfully, keep the original tax invoices in the special refund envelope the store provides, do not pack the goods in checked luggage you cannot present on request, and allow extra time at the airport for the refund desk. Only genuine tourists qualify, so Israeli residents and holders of certain long-stay visas are excluded. The net refund usually lands a few percentage points below the headline 18% once the commission is taken, and very small purchases may not be worth the paperwork. This tourist refund is unrelated to the input-VAT recovery that a VAT-registered business claims. How non-residents are taxed on Israeli-source income is explained in Israeli Income Tax for Non-Residents.

⚖ In Practice

Governing law: Value Added Tax Law 5736-1976 and the Value Added Tax Regulations (refund to tourists)
Competent authority: Israel Tax Authority (Rashut HaMisim); refunds administered by the licensed airport operator
VAT rate: 18% (2026)
Minimum invoice: approximately NIS 125 per qualifying tax invoice (2026); some goods such as tobacco are excluded
Where to claim: the VAT refund desk at the departure airport (mainly Ben Gurion), on presentation of goods, invoices, and passport
Net amount: the refund is paid less a handling commission, so it falls below the full 18%

From the full guide: VAT in Israel: A Guide for Foreigners and Non-Residents

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Can tourists claim a VAT refund in Israel?

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