Israelis Lose Money Abroad — What's Happening with VAT Refunds

Israelis are increasingly filing for VAT refunds on purchases abroad: registrations doubled in a month. Yet most travelers still don't claim their money, leaving over a billion shekels unclaimed annually. According to Passportcard, demand is highest in Greece, Italy, Hungary, France, and Poland, where VAT rates range from 20% to 27%.

Israelis are increasingly filing for VAT refunds on overseas purchases, but most still don't claim their money and lose significant sums. According to new data from the insurance company Passportcard, the number of Israelis registering for VAT refund services abroad has doubled in the past month. Previously, the process was seen as complicated, but with the development of digital solutions, the process has become simpler, leading to a rise in the number of tourists exercising their right. Nevertheless, the numbers remain low: this summer, about a million Israelis will travel abroad, and most don't file for refunds, resulting in over a billion shekels left unclaimed annually. The Passportcard Index shows that demand is highest in Greece, Italy, Hungary, France, and Poland, where VAT rates range from 20% to 27%. Passportcard Financial Services CEO Itzik Abekasis noted that awareness has increased, but the data shows that many expenses remain for which refunds are not claimed.