Israel’s Ministry of Finance is planning to increase the VAT exemption threshold for personal imports from USD 75 to USD 150, with the change expected to take effect on January 1, 2026.
According to the Ministry of Finance, the move is intended to boost competition and is expected to expand cross-border e-commerce activity, increase the range of products that can be ordered from abroad, reduce overall shipping-related costs, strengthen the purchasing power of Israeli consumers, and narrow price gaps between Israel and European countries.
However, professional officials within the Ministry of Finance and representatives of the business sector warn that the move could severely impact small and medium-sized businesses in Israel.
The Federation of Israeli Chambers of Commerce and the Manufacturers Association have also announced their intention to petition against the measure.
For further information see: https://www.gov.il/en/pages/press_26112025
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