VALUE ADDED TAX
Value Added Tax (VAT) is a tax that all Israeli consumers pay. It is a flat rate percentage of each sale or purchase that is included in the price of goods and services, imposed by the country as another source of income. As of 01/01/2016, the Israeli VAT rate is 17 percent.
To encourage tourism in Israel, tourists having purchased certain goods during their visit are entitled to a VAT refund when they depart Israel. Receipts must be presented to the clerks at a designated VAT counter with the unused/unworn goods purchased. Items must be in their original packaging. The refund will be returned in the unit of currency requested. Conditions do apply.