Author Topic: Avoiding Israel VAT tax on rental cars  (Read 7866 times)

Offline ninjaleh

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Avoiding Israel VAT tax on rental cars
« on: May 10, 2017, 11:52:35 AM »
I have dual citizenship (Israeli + American passport). When I enter Israel, I enter on my Israeli passport. As an Israeli citizen, I must pay an additional VAT tax on my hotel and rental car (no small thing, I think it's about 18% extra). If I could enter on my American passport, I would not have to pay it. And yes, last time I tried offering the rental car company my American passport, but they firmly told me they must use the passport with which I entered the country.

My specific question: Has anyone with dual citizenship every managed to enter on their American passport? I have a feeling it wouldn't work, but thought to ask.

TIA!

Offline davidd75

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Re: Avoiding Israel VAT tax on rental cars
« Reply #1 on: May 10, 2017, 12:26:22 PM »
I have dual citizenship (Israeli + American passport). When I enter Israel, I enter on my Israeli passport. As an Israeli citizen, I must pay an additional VAT tax on my hotel and rental car (no small thing, I think it's about 18% extra). If I could enter on my American passport, I would not have to pay it. And yes, last time I tried offering the rental car company my American passport, but they firmly told me they must use the passport with which I entered the country.

My specific question: Has anyone with dual citizenship every managed to enter on their American passport? I have a feeling it wouldn't work, but thought to ask.

TIA!

 I think it is Israeli law that you enter with your Israeli passport

Offline sky121

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Re: Avoiding Israel VAT tax on rental cars
« Reply #2 on: May 10, 2017, 12:32:26 PM »
I have dual citizenship (Israeli + American passport). When I enter Israel, I enter on my Israeli passport. As an Israeli citizen, I must pay an additional VAT tax on my hotel and rental car (no small thing, I think it's about 18% extra). If I could enter on my American passport, I would not have to pay it. And yes, last time I tried offering the rental car company my American passport, but they firmly told me they must use the passport with which I entered the country.

My specific question: Has anyone with dual citizenship every managed to enter on their American passport? I have a feeling it wouldn't work, but thought to ask.

TIA!
They know when you enter.  They should ask for your Israeli passport.
"Not all who wander are lost"

Offline Z56

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Re: Avoiding Israel VAT tax on rental cars
« Reply #3 on: May 10, 2017, 12:33:04 PM »
I have dual citizenship (Israeli + American passport). When I enter Israel, I enter on my Israeli passport. As an Israeli citizen, I must pay an additional VAT tax on my hotel and rental car (no small thing, I think it's about 18% extra). If I could enter on my American passport, I would not have to pay it. And yes, last time I tried offering the rental car company my American passport, but they firmly told me they must use the passport with which I entered the country.

My specific question: Has anyone with dual citizenship every managed to enter on their American passport? I have a feeling it wouldn't work, but thought to ask.

TIA!

What's happens if you leave your Israeli passport home ? And you only have your American?
“I have nothing in common with lazy people who blame others for their lack of success. Great things come from hard work

Offline sky121

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Re: Avoiding Israel VAT tax on rental cars
« Reply #4 on: May 10, 2017, 12:34:03 PM »
What's happens if you leave your Israeli passport home ? And you only have your American?
Try it. :)


It's Israel. They generally don't react too well to such things.
"Not all who wander are lost"

Offline arieldahan

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Re: Avoiding Israel VAT tax on rental cars
« Reply #5 on: May 10, 2017, 02:59:28 PM »
What's happens if you leave your Israeli passport home ? And you only have your American?
You can enter on your American passport, but they will not give you a tourist visa. Which is what you need to get the VAT off. Also, they will not let you leave without your Israeli passport. They will make you pay through the nose to get a passport at the airport, and you may miss your flight due to the delay.

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Re: Avoiding Israel VAT tax on rental cars
« Reply #6 on: May 10, 2017, 03:08:18 PM »
I have dual citizenship (Israeli + American passport). When I enter Israel, I enter on my Israeli passport. As an Israeli citizen, I must pay an additional VAT tax on my hotel and rental car (no small thing, I think it's about 18% extra). If I could enter on my American passport, I would not have to pay it. And yes, last time I tried offering the rental car company my American passport, but they firmly told me they must use the passport with which I entered the country.

My specific question: Has anyone with dual citizenship every managed to enter on their American passport? I have a feeling it wouldn't work, but thought to ask.

TIA!
You can renounce Israeli citizenship if you want to. However, if there was a change in your family status (marriage, kids, etc.) they want that updated before you can renounce. If you have kids, they will want you to get Israeli citizenship (technically, from an Israeli law perspective, they are citizens, and all that is required is an update of their information in the government registry) for all of them before you can renounce (for you and for them.)
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline davidd75

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Re: Avoiding Israel VAT tax on rental cars
« Reply #7 on: May 10, 2017, 05:32:48 PM »
You can renounce Israeli citizenship if you want to. However, if there was a change in your family status (marriage, kids, etc.) they want that updated before you can renounce. If you have kids, they will want you to get Israeli citizenship (technically, from an Israeli law perspective, they are citizens, and all that is required is an update of their information in the government registry) for all of them before you can renounce (for you and for them.)

yup application is pending

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Re: Avoiding Israel VAT tax on rental cars
« Reply #8 on: May 10, 2017, 05:36:32 PM »
yup application is pending
Then the day after it's all done you might need to go a country that charges an arm and a leg for a visa which is required for US citizens, but Israeli citizens can enter without a visa (Russia, Brazil, just to name a couple).  ;D

I've been waiting over 5 years with bated breath for someone to say that!
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Offline davidd75

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Re: Avoiding Israel VAT tax on rental cars
« Reply #9 on: May 11, 2017, 09:14:47 AM »
Then the day after it's all done you might need to go a country that charges an arm and a leg for a visa which is required for US citizens, but Israeli citizens can enter without a visa (Russia, Brazil, just to name a couple).  ;D

interesting but no plans to visit those countries; much more likely to go back and forth to eretz hakodesh; worth it to me if you are not planning on making aliya anytime soon and even if you decide to make aliya can you still to do without being an israeli citizen?

Offline 12HRS

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Re: Avoiding Israel VAT tax on rental cars
« Reply #10 on: May 11, 2017, 09:21:26 AM »
interesting but no plans to visit those countries; much more likely to go back and forth to eretz hakodesh; worth it to me if you are not planning on making aliya anytime soon and even if you decide to make aliya can you still to do without being an israeli citizen?

are you sure they let you into the country right away after renouncing. I was under the impression that there is a cooling off period where you can not come in after renouncing

Offline davidd75

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Re: Avoiding Israel VAT tax on rental cars
« Reply #11 on: May 11, 2017, 01:37:23 PM »
are you sure they let you into the country right away after renouncing. I was under the impression that there is a cooling off period where you can not come in after renouncing

never heard of that

cooling off after they make the decision or after you apply?

Offline 12HRS

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Re: Avoiding Israel VAT tax on rental cars
« Reply #12 on: May 11, 2017, 01:58:04 PM »
never heard of that

cooling off after they make the decision or after you apply?

after its all done, honestly I don't know if its true. I have heard rumors though. I would like to hear back from you when you are done.

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Re: Avoiding Israel VAT tax on rental cars
« Reply #13 on: May 11, 2017, 06:29:09 PM »
are you sure they let you into the country right away after renouncing. I was under the impression that there is a cooling off period where you can not come in after renouncing
Huh?

That makes no sense. At most there might be a cooling off period to re-obtain Israeli citizenship. Why wouldn't they want you as a tourist? (That being said, Israelis often don't think logically about these kinds of things, which is one of the reasons ELAL's mileage program is so useless).
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline 12HRS

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Re: Avoiding Israel VAT tax on rental cars
« Reply #14 on: May 11, 2017, 10:04:38 PM »
Huh?

That makes no sense. At most there might be a cooling off period to re-obtain Israeli citizenship. Why wouldn't they want you as a tourist? (That being said, Israelis often don't think logically about these kinds of things, which is one of the reasons ELAL's mileage program is so useless).

If not everyone would renounce to avoid the army.

Offline davidd75

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Re: Avoiding Israel VAT tax on rental cars
« Reply #15 on: May 12, 2017, 09:24:40 AM »
If not everyone would renounce to avoid the army.

please elaborate?
people who want to renounce will do so whether or not there is cooling off period

Offline sky121

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Re: Avoiding Israel VAT tax on rental cars
« Reply #16 on: May 12, 2017, 09:27:17 AM »
please elaborate?
people who want to renounce will do so whether or not there is cooling off period

Not if it wasn't worth it to them - if they couldn't return to Israel ?
"Not all who wander are lost"

Offline Saulius

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Re: Avoiding Israel VAT tax on rental cars
« Reply #17 on: May 12, 2017, 09:48:46 AM »
You can enter on your American passport, but they will not give you a tourist visa. Which is what you need to get the VAT off. Also, they will not let you leave without your Israeli passport. They will make you pay through the nose to get a passport at the airport, and you may miss your flight due to the delay.

One can also change the spelling of their name on their other non-Israeli passport, e.g. American, and then the Israelis would never know that they are Israeli. I know somebody who made aliyah, and then did this for ideological reasons.

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Re: Avoiding Israel VAT tax on rental cars
« Reply #18 on: May 12, 2017, 10:54:56 AM »
Not if it wasn't worth it to them - if they couldn't return to Israel ?
Baloney!

You can only renounce if you are not under obligation to serve. (Because you already served, or are legally exempt).
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline davidd75

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Re: Avoiding Israel VAT tax on rental cars
« Reply #19 on: May 12, 2017, 01:16:29 PM »
Baloney!

You can only renounce if you are not under obligation to serve. (Because you already served, or are legally exempt).

what are some of the legal exemptions?  living in the US?