 Hey guys, welcome back to my YouTube channel. This is Daniel Rosal here I wanted to make today a video for the benefit of other online shopping addicts because Online shopping is amazing. It buying stuff in Israel as I've said a billion times only on this channel is super expensive But fortunately the market is opening. It's getting more competitive more online stores are selling here very thankfully Including Amazon Amazon currently at the time I'm recording this and I just wanted to jump to that screen quickly because these things do change It is 16th of December. So Amazon now if it's more than 45 49 dollars they have a promo on on eligible free shipping items That's made it pretty easy to get stuff to Israel and like decent price stuff affordable stuff so things are moving in a very very positive direction and but there are laws to be aware of and I make this video because Essentially not 12 hours goes by in any day of the calendar year without an English speaker in Israel saying What's up? It's the $75. How does that work exactly? So I just wanted to record a screen of this video now This is actually an official government website from the good people at the Rishut Amisim by Israel Also known as the Israel Tax Authority now They don't always do resources in English people do forget that English is not an official language in Israel only only Hebrew and as far as I know Arabic are I say as far as I know because Arabic always was and then there Was some controversy about the nation-state law. I don't know exactly its current status, but Kitsuo as they say English isn't official, but this is a resource they've done in English I do nevertheless recommend trying to get Hebrew resources where possible because they tend to be updated more and be more reliable But this is probably pretty reliable because they have this in English because so many people Who buy stuff online in Israel are English speakers? So basically I just want to talk about the regulations as they explained them, okay? So firstly The first thing to say is that okay first in section three the top the tax Calculation as well as the currency conversion if the transaction was made in a currency other than the US dollar aka USD is Performed on the date of arrival of the goods in the country and in accordance with the currency exchange rates set on that date Not on the date of the transaction or purchase So all these laws are super super clear the Bank of Israel the central bank does promulgate these official exchange rates Which if you're a freelancer trading internationally as I was for more than three years you need to know about these If you're billing and firing currency because ultimately you are paying tax as calculated in in a shekel hadash Therefore you need to know about these now you can get them very easily Through the Bank of Israel website or you can also find them here And I'm just loading up that page if my internet will ever be quick enough We will get that we'll get to those momentarily So that's the first thing to say is if you're buying stuff and the order is the invoice you're getting is not in the United States dollar Then the currency conversion to the dollar is going to be performed on the date of the arrival of goods in Israel So that technically is a bit puts you at a tiny bit of risk Because currencies fluctuate therefore it's probably actually safe as to buy Goods that are denominated in dollars So Amazon gives you an option to buy in to pay in dollars or checkouts now. That's number one Let's get to the meat of it here the importation of a consignment worth up to 75 dollars Now this is the one that the vast majority of people ask questions about on the internet The rules are as follows a shipment containing items with a total value of up to 75 dollars is completely exempt from paying importation taxes now The total value of up to 75 does not include transportation and insurance if they are calculated separately from the value of the goods So this is good news This means that we actually get a bit more leeway here in our 75 bucks because they're not including the shipping and handling so they give an example if you buy clothes that are worth $65 and The shipping fees are 20 therefore it's going to be an $85 order so long as it's written out on the On the customs declaration CN 22 that comes on the packaging if you're ordering from any online store They're you know a reputable online e-commerce merchant. They're going to spell that out You should be pretty much okay, and I imagine if you have to query it you can send your invoice in digital form And I haven't had problems I have had to pay VAT when I when I bought more than 75 dollars of goods And that was a pretty straightforward process and if it's under I've on countless occasions Received goods including today from Amazon for less than this and there are no problems whatsoever except for the problems of getting the stuff which can be problematic and There's one more caveat for your attention two or more packages sent from the same supplier to the same importer Up to 75 hours apart will be considered as one split consignment and the importation taxes will be calculated According to their combined value meaning as follows a Supplier in this case realistically is an online store So I don't know if you could argue the case that if you bought from two different merchants on a marketplace like Ali express it Therefore technically they were bought from two suppliers Probably they're gonna I wouldn't risk it so just take a supplier to meet a marketplace for the purposes I would if you want to be safe So Amazon eBay Ali express the next I heard what have you booked depository? So if it's from the same place to the same person and the orders are placed within 72 hours They're going to be added. So in other words if you buy it's $60 worth of stuff from Amazon on Monday $60 worth of stuff from Amazon on Tuesday. It's going to be calculated as a hundred twenty dollars You're gonna have to pay 120 times zero point one seven To you're gonna basically pay VAT Value added tax of 17% on that order because they will be calculated cumulatively our handy She'll touch are a matabea our official curts. So these are the official currency exchange rates at tarik tokef Me tarik tokef is here. Okay, so you can see today is This is the period that we have here and these are the different currencies So you can look those up now. What happens if you spend more than 75? So the next category is between 75 and 500 dollars And basically what goes on here is that you do have to pay your value added tax according to the VAT rate at the current Time I if I'm if I haven't gone crazy It is 17% but you also have to pay the total value of 75 to 500 does not include transportation insurance costs If they are calculated separately from the value of the items The shipment containing this in this bracket It's exempt from paying customs duties and is subject to VAT and purchase tax So up to 75 no VAT no purchase tax no anything Between 75 and 500 starts getting stuff starts getting more expensive You have to pay via VAT and you have to pay purchase tax if there is a purchase tax on the item For example radar detector costing 480 bucks. It's got a transportation cost of 40 bucks So it'll be charged customs. It will not be charged customs But only purchase tax plus VAT and the total rate of those two taxes is 39.4 percent of the value of the item Now stuff starting to get expensive And that comes to 205 so it's gonna be 205 plus Sorry, it's gonna be 205 on top of the cost obviously of the Whatever you're paying here 520 plus 205 so compared to radar detector which costs 520 will be sent to Israel Sent Israel for free, which will be charged 56.2 percent since its prices over 500 in this case It will be taxed at 281 for your attention two or more packages sent from the same supplier to the same Importer up to 72 hours will be considered as one split consignment and the importation taxes will be calculated according Okay, so basically the same thing applies now if you want to know what the Tax rates are there is a separate resource somewhere here. We go So Rishut al-Masim in Israel have a resource called the Mekhashbon the calculator of that Masih Yavoo the import taxes Le moterim be of a oh is she again my Hebrew pronunciations probably off But I can understand what the words mean the calculator for import tax for a for a personal is she for a personal Importer not a not business importer. So I don't know. Let's go into Hashmal v. Electronica Chimum v. Kiro ha bite Do it shemesh. No, let's go for Mazgan. Let's say you're bringing in an air conditioning unit And under so metachat la shimmy Hamish dolar patur Ben shimmy Hamish la Hamish me a dollar shimmy 17% ma'al Hamish me a dollar she or 31 and a code of fs-4 and they have a Mekhashbon mass as well there I just if you want to do that, okay? So you can look it up for each item and see exactly what the rates are going to be so now we've covered the up to seventy five dollar territory we've covered the seventy five to five hundred dollar territory and we've Then the final one that there's two more five hundred to one thousand and more than a thousand if it's five hundred to one thousand It's going to be subject to that as well as custom duties and purchase tax If there is a purchase tax in accordance with the customs tariff order You can find those elsewhere and if it's more than one thousand dollars a ship a shipment Containing items with the total more than one thousand dollars in the United States dollar or shipments of tobacco cigarettes alcoholic and intoxicating beverage The apply tax rate is calculated according to the value the parcel plus the sure plus the shipping and insurance Costs if any apply to view the customs tariff and purchase tax, please click here So really useful. They have all these different that calculators This is a slightly different resource again and that you can find out what those are I'm not going to go into them in the video because I think the vast majority of people a I'm not a customs a customs expert I just know from buying a lot of stuff online Roughly how this system works and therefore I put this video together. That's how it works to summarize up to seventy five bucks It's going to be it's going to be free of everything of VAT. It's going to be free of purchasing tax However, that's seventy five dollars does not include chip it Includes does not include shipping and handling seventy five dollars worth of goods if it's not in the US dollar then it's going to be the conversion rate to The dollar is going to be calculated when it comes into Israel. That's kind of important to note if it's between seventy five and five hundred you're going to be paying seventy five percent and You're also going to have a purchase tax that applies There is an online calculator that will tell you for like each item what the rate you're going to be paying is that's on the website Israel if it's seventy five to five hundred then it gets more expensive Sorry five hundred to one thousand it gets more expensive again because you're also playing you're also paying customs duties And then over one thousand you've got another calculator there to assist you with hope this video has been a use My name is being done. My name. It has been my name is Daniel Rose. Well, thanks for watching If you want to get more videos like this feel free to subscribe to this YouTube channel