Money and shopping
Israeli Currency
The State of Israel’s currency is the New Israel Shekel (NIS) or shekel for short (pluralized as shkalim in Hebrew or shekels in English). There are 100 agorot (agora in singular) in each shekel. Bank notes are in denominations of NIS 20, 50, 100, and 200; coins are in denominations of NIS10, NIS5, NIS1 and 50, 10 and 5 agorot.
Changing Money
Unlimited sums of local and foreign money may be brought into Israel as cash, travelers’ checks, credit cards or State of Israel bonds. Foreign currency of all kinds may be exchanged at the airport, banks, post offices, most hotels or licensed exchange agencies in large cities. A passport is required when exchanging travelers’ checks. The rates vary from place to place, and banks charge a commission. It is recommended, though not obligatory; to carry a small amount of US dollars, since certain tourist sites, especially in the Old City of Jerusalem, take payment in dollars.
Shopping
All of the old towns in Israel have bazaars but the ultimate is to be found in the Old City of Jerusalem. Favorite times to purchase include leather goods, pottery, crafts, olive-wood carvings and hand blown glass. In the open markets you may bargain.
Purchases and Payments and VAT Refund
Purchases can be made in Israeli Shekels, U.S. dollars or Euros.
Nevertheless, storeowners and service providers are not required to accept foreign currency and are permitted to give change in shekels even if payment was made in foreign currency.
Tourists who have purchased items with a value exceeding $100 (including VAT) in stores that are registered with the Ministry of Tourism or in stores participating in the VAT-refund plan are entitled to a refund of VAT when they leave the country.
If the amount to be reimbursed exceeds $1,000, it will be sent after the invoice is verified with the tax authorities.
Stores that offer VAT refund service have a special sign.
To receive VAT refund, ensure that you get a receipt. The receipt and purchases must be put into a sealed bag.
Major credit cards – American Express, Diners, Visa, Mastercard/Access/Eurocard – are widely accepted in Israeli restaurants, stores, hotels, museums, etc.
Tourists must then go to the “Change Place” at Ben Gurion airport or other exit port. If you wish to send the items that you purchased with your luggage, you must declare the purchase at the security check, and present your passport, flight ticket, purchases and receipts at the counter. The attendant will open the bag, examine the contents, sign the receipt, and refund the VAT in any currency minus a commission. The VAT refund can also be sent to your address abroad for an additional charge.
There is no VAT refund for the following items: food, drinks, tobacco products, electrical appliances, cameras, film or other photography equipment.
Additional information about VAT refunds is available here or at 03-975-4020.
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