Great News: Tourist VAT Exemption Stays Strong in Israel 2025

Planning a trip to Israel? Here’s some encouraging news for your travel budget. A new Treasury report reveals that Israel’s VAT exemption for tourist services represents a relatively small portion of the country’s tax benefits in 2025, which means this money-saving perk for international visitors is likely here to stay.

This VAT exemption helps keep your Israel travel costs more affordable by removing the tax burden on various tourist services. While the report notes that the potential revenue from canceling this benefit would be much higher during normal tourism periods, the current policy continues to prioritize making Israel accessible to international visitors.

Eilat continues to offer even more savings, maintaining Israel’s second-largest VAT benefit zone. This means travelers to Israel’s southern resort city can enjoy additional tax advantages on purchases and services.

For travelers planning their Israel adventure, this stability in tax policy means you can budget confidently knowing these cost-saving measures remain in place. Whether you’re exploring Jerusalem’s ancient streets or relaxing on Tel Aviv’s beaches, these tax benefits help stretch your travel dollars further.