End of celebration? • VAT exemption from overseas purchases may be eliminated • HWzone

End of celebration? Exemption from VAT on online purchases from abroad may be eliminated

The order that makes small purchases in online out-of-state stores so lucrative may be canceled due to the deficit deficit

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Like to shop from your PC or smartphone? It may soon be more expensive at 17 percent, even if you make sure not to cross the familiar 75 dollar threshold.

according to Reporting on the Globes website, The Treasury is considering the possibility of eliminating personal import tax exemptions of up to 75 dollars per order - with the immediate effect of such a move being a fixed addition of 17 percent (VAT) on each purchase of any product and any amount, plus any additional possible purchase taxes in categories Certain products.

Many retailers in the country declare that the exemption from VAT to private purchasers on the net is unfair and does not allow them to provide decent competition, as they are charged a fee starting with the first shekel, which is naturally rolled out to consumers

Undoubtedly, this exemption, alongside an order that eliminated the purchase taxes for much of consumer goods a few years ago, played a crucial role in turning online shopping into a quasi Leumi in Israel - with expected to be from 100 million packages of personal imports from abroad in the current year.

If the exemption is indeed decided, with the aim of adding hundreds of millions of shekels to the state coffers to reduce the government deficit and without announcing a public and sweeping tax increase, it will be interesting to examine how this will affect the buying habits of Israeli consumers - will we see a reduction in overseas purchases Or alternatively, growth in larger and more expensive orders.

The fate of this decision is likely to be determined after the appointment of a new government and the appointment of a new finance minister, but as we face news of the deficit deficit on the one hand and promises that there will be no (supposedly) tax increase on the other - the possibility of abolishing this benefit (much customary) Other Western countries, with varying thresholds that are even higher in some cases) are becoming more and more logical.

In the past, we had hoped to see a government initiative that would increase the level of VAT and tax exemption even more and allow for an even greater variety of items and products to be cheaply priced - but as of now, we may be closer to the sorry situation. Let's hope the reported 'drawer plan' will remain in the drawer.

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