Guide for New and Visiting Faculty

Value Added Tax (VAT/“ma'am”)
A value-added tax (VAT, or “ma'am” in Hebrew) of 16.5% is charged on purchases and transactions
except tourists' hotel bills and car rentals paid for in foreign currency (cash, traveler's checks, or
foreign credit cards).
VAT Refunds and Tourist Reductions: Tourists who purchase goods totaling more than $100 on one
invoice are entitled to a discount of at least 5% at stores registered with the Ministry of Tourism (look
for signs saying "TAXVAT" or "Recommended by the Ministry of Tourism") and a VAT refund at the
port of departure. For more information see www.cpl.co.il Keep the receipts and ask for a cash refund
at Ben-Gurion Airport or Haifa Port (look for the Change-Place desk in the departure lounge). If you
leave Israel from another departure point, your refund will be sent to your home address. Keep in mind
that this process may take some time and that you may be asked to produce the goods in question. For
further details, consult the Department of Customs and VAT, 5 Kanfei Nesharim Street, POB 1170,
Jerusalem 91010; Tel.: 6559559; Fax: 6525327; Web site: www.mof.gov.il. They periodically issue
Guide 14: Customs Guide for Tourists, which is available by mail or from Israel Government Tourist
Offices. Another useful booklet is the Ministry of Tourism's Made in Israel, distributed free of charge
at Ben-Gurion Airport and at IGTO offices.
Note that Eilat is a free trade zone. There is no VAT on goods and services for tourists, and many
shops sell duty-free items.
National Insurance (Bituah Leumi)
National Insurance, or Bituah Leumi, is a compulsory insurance paid by every Israeli resident from the
age of 18 according to their income and status. Among the many social security benefits paid by
bituah leumi are old-age and survivors' pensions, child allowances, employment injury benefits,
disability, unemployment, and military reserve duty compensation.
Rights of Foreign Nationals: Israel is a signatory to international conventions on social security
matters with Austria, Belgium, Canada (limited convention), the Czech Republic, Finland, Poland,
Uruguay, the UK, France, Germany, Switzerland, the Netherlands, Sweden, Denmark, and Italy
(limited convention). Scholars or visitors from these countries may have accrued insurance benefits
which can be utilized while in Israel. However, each case is considered entirely on its own merits and
cannot be regarded as a generality.
Foreign nationals, including doctoral fellows, visitors, and their spouses who do not receive a salary
are not covered by the National Insurance Law, and are therefore not entitled to any allowances. You
should thus ensure that you have adequate insurance for maternity hospitalization, accidents (except
car accidents which are covered by third-party compulsory insurance), and disability. Further
information may be obtained from the Public Relations Department of the NII, 11 Rehov Hatzvi,
Jerusalem, Tel.: 6709070. Hours S-Th 9:00-14:00. Web site: www.btl.gov.il
E-mail: liaison@nioi.gov.il
Customs Regulations
This section offers information on customs regulations that may be helpful to new immigrants (olim)
and visitors, but it is in no way intended as a substitute for the official information produced by the
Department of Customs and VAT. The Department issues an informative, step-by-step Aliyah Pocket
Guide, which includes updated material on customs regulations and privileges. The Aliyah Pocket
Guide and other basic information booklets may be obtained from the Ministry of Immigration and
Absorption, 15 Hillel St., Jerusalem 94581, Tel.: 6214614; Web site: www.moia.gov.il
If you are a visitor, you should find out in advance what will be available in your rented apartment to
determine your shipping plans. Whatever your status, before shipping any belongings to Israel, make
yourself thoroughly familiar with the latest customs regulations in the official Customs Guides 4 and
14. This will save you unnecessary aggravation, as changes do occur.