Author Topic: Avoiding Israel VAT tax on rental cars  (Read 7909 times)

Online davidd75

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Re: Avoiding Israel VAT tax on rental cars
« Reply #20 on: May 12, 2017, 01:21:46 PM »
Not if it wasn't worth it to them - if they couldn't return to Israel ?

No one suggested you cannot permanently return to Israel, rather what was suggested was a cooling off period; I don't see even if true how a temporary cooling off period would be a deterrent to renouncing

Offline 12HRS

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Re: Avoiding Israel VAT tax on rental cars
« Reply #21 on: May 12, 2017, 01:56:47 PM »
No one suggested you cannot permanently return to Israel, rather what was suggested was a cooling off period; I don't see even if true how a temporary cooling off period would be a deterrent to renouncing

if all of your family is in israel and you needed to live out of israel for a year or more at the age of 18, that would potentially be a deterrent. either way I highly doubt that it is simple to renounce if you are of army age.

Offline ExGingi

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Re: Avoiding Israel VAT tax on rental cars
« Reply #22 on: May 12, 2017, 02:40:40 PM »
what are some of the legal exemptions?  living in the US?
Medical exemption, or if one didn't reside in Israel for more than 6 months (per year IINM) after a certain age (12 IIRC, but it can be looked up).
No one suggested you cannot permanently return to Israel, rather what was suggested was a cooling off period; I don't see even if true how a temporary cooling off period would be a deterrent to renouncing
So let's play out that suggestion:

Someone renounced their citizenship, and the next day after approved, fly to Israel with foreign passport (and certificate attesting that Israeli citizenship was renounced). They check in with the airline at US or EU airport with US or EU passport. Nowhere on the airlines terminal does it say that they have to ask each passenger if they are or were previously an Israeli citizen. They arrive at TLV, stand on the line for foreign passports, hand their passport and certificate attesting that they are no longer an Israeli citizen, and what happens next??
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Online davidd75

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Re: Avoiding Israel VAT tax on rental cars
« Reply #23 on: May 12, 2017, 02:41:20 PM »
if all of your family is in israel and you needed to live out of israel for a year or more at the age of 18, that would potentially be a deterrent. either way I highly doubt that it is simple to renounce if you are of army age.

I assumed we were focusing on Americans living in the US renouncing Israeli citizenship

Offline 12HRS

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Re: Avoiding Israel VAT tax on rental cars
« Reply #24 on: May 12, 2017, 03:19:47 PM »
I assumed we were focusing on Americans living in the US renouncing Israeli citizenship

yea well I am in that boat and I was told by my rebbeim in israel it would not work. That it would be a long process and I would not be able to get back into Israel afterwards for a while - again I never actually verified this.

Offline ExGingi

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Re: Avoiding Israel VAT tax on rental cars
« Reply #25 on: May 12, 2017, 03:36:06 PM »
yea well I am in that boat and I was told by my rebbeim in israel it would not work. That it would be a long process and I would not be able to get back into Israel afterwards for a while - again I never actually verified this.
If you entered Israel with an Israeli passport and stayed there more than 6 months after the age of 16 (definitely, or IIRC it might even apply if that happened after the age of 12) then you become obligated to serve in the Israeli army and CANNOT renounce until that is satisfied (by serving or getting a medical exemption).
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 #26 on: May 12, 2017, 04:02:33 PM »
If you entered Israel with an Israeli passport and stayed there more than 6 months after the age of 16 (definitely, or IIRC it might even apply if that happened after the age of 12) then you become obligated to serve in the Israeli army and CANNOT renounce until that is satisfied (by serving or getting a medical exemption).


I had a one year exemption anyways. How that plays out I have no clue.

Offline ExGingi

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Re: Avoiding Israel VAT tax on rental cars
« Reply #27 on: May 12, 2017, 04:45:09 PM »

I had a one year exemption anyways. How that plays out I have no clue.
What's that? They specifically allowed you to enter for a year without being required to enlist, or just a one year postponement like every Israeli Yeshiva Bochur can get (and needs to renew)?
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 #28 on: May 12, 2017, 06:12:58 PM »
What's that? They specifically allowed you to enter for a year without being required to enlist, or just a one year postponement like every Israeli Yeshiva Bochur can get (and needs to renew)?

The former, its designed for people who's family is in the US and the child left israel before a certain age (unsure the specific age) It allows me one full year in Israel without issues and then I can visit for up to 4 months every calendar year. I actually had an issue because I used up my first year and wanted to go back so I figured I could go from Sep 1- Dec 31st and then another 4 months through the end of April. They mailed me a draft notice in feb and when I went to explain it in March they were not happy with my interpretation of the rule. I know someone else who left for a week over new years and had no issues. They told me I had a week to leave the country and I couldn't come back till the next calendar year.

Funny enough I now get stopped every time leaving the country and they have to verify with Tel Aviv that I am ok to leave. I think I got out of their system as being ok to visit once they sent me the draft notice. I still travel with the waiver, I will upload a copy of it next week.

Offline @jack123

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Re: Avoiding Israel VAT tax on rental cars
« Reply #29 on: August 03, 2017, 05:11:34 PM »
As dual citizen, if you prepay something (hotel, rental cars) with Expedia or the like w/o vat, Will hotel still charge it when u show up without tourist visa?

Offline ExGingi

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Re: Avoiding Israel VAT tax on rental cars
« Reply #30 on: August 03, 2017, 05:18:16 PM »
As dual citizen, if you prepay something (hotel, rental cars) with Expedia or the like w/o vat, Will hotel still charge it when u show up without tourist visa?
Yes
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline hocker

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Re: Avoiding Israel VAT tax on rental cars
« Reply #31 on: August 04, 2017, 03:00:59 AM »
Yes
I've had hotels where if you spoke only English and gave every impression that you're a tourist they didn't ask for it or accepted the 'misplaced' excuse. Big YMMV.

Offline B.D.Da'ehu

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Re: Avoiding Israel VAT tax on rental cars
« Reply #32 on: August 04, 2017, 04:43:56 AM »
I've had hotels where if you spoke only English and gave every impression that you're a tourist they didn't ask for it or accepted the 'misplaced' excuse. Big YMMV.
Don't they always ask for your passport? They don't look for the visa?

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Re: Avoiding Israel VAT tax on rental cars
« Reply #33 on: August 04, 2017, 11:45:05 AM »
Don't they always ask for your passport? They don't look for the visa?
IME they do (or IINM they ask for the little card that gets printed out upon entry, and unless you can show one that has you entering as a tourist, they will charge you VAT, telling you that you can claim a refund upon exit).
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

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Re: Avoiding Israel VAT tax on rental cars
« Reply #34 on: August 04, 2017, 12:15:58 PM »
Don't they always ask for your passport? They don't look for the visa?
I've given them DL