Shopping online? You may be charged VAT where you didn't expect it

Israelis buying discounted goods from foreign online stores may face an unpleasant surprise: customs can charge VAT if the seller declares the full pre-discount value on the package, exceeding the $75 threshold. This happened to Israeli Yael, who ordered cosmetics from the KITCH website. Although she paid about $60, she had to pay 118 shekels in VAT for two packages. The Tax Authority requires not only a receipt but also confirmation that the discount and gifts were offered to all customers as part of a promotion, not individually. After Ynet's inquiry, Yael plans to reapply for a tax refund, attaching the store's promotional email about the Halloween sale. The authority explained that the charge was based on the seller's declarations, and to get a refund, one must submit a request with proof of the promotion's terms.