Shalom all,
All packages arriving in Israel that have a value of up to$75 are completely free of tax. Packages that have a value of between $75-$325 are also assessed 16% (soon to be 17%) VAT.
Higher than $325 you'll pay VAT, and any applicable customs duties, and you'll also pay a hefty customs clearing fee.
Bottom line - don't ship anything to Israel in the mail if it costs over $75. And don't mis-price the items, the customs open almost every package that comes from China because no one takes the Chinese customs declarations seriously. If you do this, you're almost certain to get caught.
-yair