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Buying tuning parts from abroad into Israel: VAT, purchase tax and the $75 ruleBuild Ladder blog

Most of the parts in our guides are sold by shops in the US, the UK and Germany. Ordering them to Israel adds tax that can reach 40% of the price. Here are the rules from the Tax Authority's own pages, and what they mean for a downpipe or a set of wheels.

Reading time
5 min
Written for
Anyone ordering parts to Israel
Blue Hyundai i30 N hatchback parked by autumn trees

The three thresholds

  • Up to $75: no import taxes at all. The $75 is the value of the goods; shipping and insurance don't count if they're charged separately. Two or more parcels from the same seller to the same buyer within 72 hours count as one shipment.
  • $75 to $500: no customs duty, but VAT is due, and purchase tax where it applies. The Tax Authority names car spare parts as goods that carry purchase tax. Above $75 the tax is calculated on the value plus shipping and insurance.
  • $500 to $1,000: VAT, plus customs duty and purchase tax where the customs tariff sets them.

VAT is 18%. The tariff sets purchase tax on car parts such as exhausts and radiators at 12% on an uplifted value, with no customs duty, and the Tax Authority's personal-import calculator shows a combined rate of 40.66% above $75 for general car parts, exhaust silencers, shock absorbers and electrical devices for cars.

Two traps

  • Wheels have no $75 exemption. The calculator lists road wheels and their parts at 40.66% for any amount.
  • Exhaust parts need an approval. Exhaust silencers are listed in the personal-import order's second schedule: the calculator asks for an approval from an accredited vehicle lab or the Ministry of Transport. Check before you order a downpipe or an exhaust.

What it costs, four examples

OrderPrice + shippingCombined rateTax to pay (about)
Spark plugs, shipping charged separately$60 + $150%$0
Intake$420 + $6040.66%$195
Downpipe$850 + $10040.66%$386
Set of wheels$800 + $10040.66%$366

Our own arithmetic: (price + shipping) × 40.66%, from the calculator's rate. The exact amount depends on the exchange rate and the item's classification, so use the calculator for your item before you buy.

The threshold has changed before

In November 2025 the Ministry of Finance announced it would raise the exemption from $75 to $150, and a Knesset research paper records the order approved on 24 December 2025. As of the Tax Authority guide updated on 21 June 2026, and its live calculator, the threshold is $75 again. Check the current figure before a big order.

How to pay less, legally

  • Compare with an Israeli dealer. A local price already includes VAT and import costs, and comes with a warranty and fitting. The Israel article and the "Tune it in Israel" box on each Hebrew guide list the brands' official dealers here.
  • Small consumables under $75. Plugs, filters and gaskets often fit under the exemption.
  • Don't split orders to dodge tax. Parcels from the same seller within 72 hours are added together anyway.

Sources

This is general information, not tax advice. Rules and rates change; the Tax Authority's calculator is the final word for your item.

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