Use of Foreign Currency : Isreal

Use of Foreign Currency Many services and shops accept U.S., Canadian,and Australian dollars as well as Pounds Sterling, but are under no obligation to I accept foreign currency. If you do pay in foreign currency (traveler’s checks and credit cards included), expect your change to be in shekels. When you use foreign currency, you are exempt from the domestic Value Added Tax (VAT) on goods and services (18%). Many shops include VAT in listed prices, so you may have to insist on a discount.

VAT refunds can also be obtained by presenting all receipts of purchases made with foreign currency at any export bank upon your departure. There are limitations to this refund; purchases must be made at stores bearing the proper logos, purchases must be at least US$50, your purchases must be wrapped in a plastic bag which will remain closed for the duration of your trip, etc. Be sure to pick up the Customs Guide for the Reimbursement of VAT to Tourists at the air-port when you arrive.

The refund will be in the currency you used; if the bank cannot make the refund, it will be mailed to your home address. A new policy allows Eurocheques to be written in shekels and counted as foreign currency for discounts. You may bring an unlimited amount of currency, foreign or shekels, into the country. Upon departure you are permitted to take up to USS100 cash. Anything over this must be accompanied by receipts to prove that it was brought into the country. Unless you want to frame them or wallpaper your kitchen, exchange all your shekels before you leave Israel. Few foreign banks are willing to buy them.