TL;DR: A tourist who is not an Israeli citizen can reclaim value-added tax (18%) on goods bought in Israel, on leaving the country. The threshold: a purchase of at least NIS 186 including VAT on the day of purchase, from a shop approved for tourist VAT refunds. At Ben Gurion the service is run by Milgam: goods that do not go on the plane as hand luggage are shown at a desk before the security checks, and the money itself is paid after border control. The figures here are based on the Israel Tax Authority and the Israel Airports Authority.
Who Counts as an Eligible Tourist
The right to a refund is set in Section 43b of the Value Added Tax Law, 1975: a tourist is entitled, when leaving Israel, to a refund of the tax paid on goods bought at an approved business. According to the Israel Tax Authority, a person who is not an Israeli citizen is eligible if one of these applies:
- They entered Israel on a B2, B3 or B4 entry visa and their passport was stamped accordingly.
- They hold form Al/17, "Entry/Exit Registration".
- They hold the form "Declaration of a tourist who is not an Israeli citizen, for the purpose of the VAT Law".
The refund applies only to purchases from the current visit. According to the Israel Airports Authority, there is no retroactive refund for goods bought on previous visits.
The Minimum Purchase & Approved Shops
The minimum purchase for a refund is NIS 186 including VAT on the day of purchase. The purchase has to be made at a business approved by the Israel Tax Authority and the Ministry of Tourism as a tourist VAT-refund business. Such a business has a sticker on its door or window saying so.
At the time of purchase you receive a tax invoice and a designated document for the VAT refund. The details of the goods and the tourist's personal details have to be filled in on both. The date on the designated document is the same as the date on the tax invoice, and both fall between the date of entry into Israel and the date of departure. Both are presented to a Milgam representative when leaving the country.
The goods are bought for personal use, in non-commercial quantities, and are taken out of Israel. For jewellery and valuables worth more than NIS 20,000 including VAT, the shop packs the item in its own original bag, and the bag stays closed until the item is shown to the Milgam representative.
Claiming the Refund at Ben Gurion
At Ben Gurion the VAT-refund desks are operated by Milgam Municipal Services Ltd. The process has two stages, and the first depends on how the goods go on the plane:
These goods are shown before the security checks and before the bags are handed in at check-in, at the VAT-refund desk in the departures hall, 3rd floor, opposite the information counter. There you present your passport, the goods, the tax invoice and the designated document, and receive a stamped approval.
The money itself is paid by a Milgam representative only after border control, at the VAT-refund desk: in Terminal 3 at Concourse E, and in Terminal 1 in the duty-free area. The refund request is made before leaving Israel; a request that arrives from abroad, for any reason, is not approved.
How Much You Get Back
Israel's VAT rate is 18%, since 1 January 2025. The actual refund is lower, because Milgam charges a fee of NIS 27 (including VAT) for checking each designated document. The fee is index-linked, under the agreement between the Israel Tax Authority and Milgam.
The refund can be taken in cash, by cheque or by bank transfer. Two of these carry an additional fee:
- Cash: 1% of the refund amount, plus VAT.
- Bank transfer: NIS 47.5, regardless of the number of documents or the refund amount.
Who Cannot Claim
According to the Israel Tax Authority, a person entering Israel in one of these situations is not a "tourist" for the purpose of the law and is not eligible for a refund:
- Someone entering on a B1 visitor visa.
- Israeli citizens with dual citizenship (Israeli and foreign), even if they have not lived in Israel for many years.
The exception: a minor born abroad to Israeli parents is eligible until the age of 18.
Details That Save Mistakes
- Form Al/17 is one of the documents that prove tourist status for the refund.
- Goods shown at the pre-check-in desk are shown before the bags are handed in, so the goods, the invoice and the designated document need to be at hand at that point.
- A designated document whose date differs from the tax invoice, or does not fall between the dates of entry and departure, does not meet the conditions.
- At the ports of Eilat, Haifa and Ashdod there is no Milgam desk, and advance coordination with the franchisee by email is required.
For details: Milgam customer service on 03-7280123 or by email at vat.info@milgam.co.il.
Sources: Israel Tax Authority, Israel Airports Authority, the Value Added Tax Law. This is general information only; where it conflicts with the law, the law prevails.
Flying to or from Tel Aviv?