Israel - Pricing Israel - Pricing
Israel is a highly competitive market and price is a key factor driving Israeli corporate and consumer purchasing decisions. Presenting U.S. products as high quality at fair market prices is a good long-term sales strategy. Distributors prefer exclusivity and annual sales targets should beincorporated into representation contracts.
Israel’s VAT is 17% and charged on virtually all services and products sold in Israel, including imports (except fresh fruits and vegetables). The VAT on imports is levied on the CIF (Cost, Insurance and Freight) landed cost plus purchase tax. VAT is recovered by the importer upon resale of the goods and is ultimately paid by the consumer.
Israel levies purchase taxes on many consumer goods. The Government of Israel has reduced or eliminated the purchase tax on more than six hundred items since 2000, including televisions, washing machines, electrical appliances, and cosmetics. The purchase tax on standard vehicles with combustion engines is 83%, hybrids, 30%, and electric vehicles 10%.