Israelis shopping for cheaper clothing and household goods abroad from Amazon, Ali Express and other online sites woke up on Tuesday to a zigzag of decisions by lawmakers, leaving many in limbo whether they will have to pay value-added-tax charges on top of their already purchased orders from overseas.

Early Tuesday morning, an order from Finance Minister Bezalel Smotrich that let Israelis buy up to $150 of personal goods from overseas via popular online websites, exempt from 18% VAT, was revoked by lawmakers in the Knesset.

As a result, the measure, which came into effect in December and doubled the VAT-exempt amount, was returned to the previous threshold of $75.

That meant that people who had placed orders over the $75 dollar limit would face immediate VAT charges for the packages depending on the date and time they were cleared by Israeli customs. Customs is responsible for inspecting and classifying the packages that require VAT.

However, just a few hours later, Smotrich signed a new decree to expand the VAT exemption on personal imports from $75 to $130, which took effect at midnight Tuesday night. The new order caused more confusion and anger among Israeli consumers. Essentially, it means that online purchases above $130 would be liable to 18% VAT charges.

“In recent weeks, customers made online overseas orders........

© The Times of Israel