IMPORT OF BUSINESS EQUIPMENT BY AN OLEH

An Ole is entitled to a Customs exemption on imported equipment for business if he/she is registered as ‘’Self-Employed’’ or has established a business and is the owner of the business and fulfills the Meches (Customs) requirements listed below:

Requirements:

1. The Ole hadash must submit documents to Meches showing he/she is a business owner or self-employed in order to release the equipment tax-free. For example: a contract for rent or purchase of a premises, license from the local authorities or permits from The Misrad Ha-Briut, Misrad Ha-Ta’Asiah, or Mischar (Ministries of Health, Industry or Commerce).

2. Produce a certificate showing that he is registered as the owner of a business or is Atzmai (self employed) with VAT (value added tax) registration.

3. The maximum total value of goods that can be exempt is $36,000. If the value of the goods exceed $36,000, Customs Duties will be charged on the excess amount.

4. The equipment will be used in the Ole's declared work place only and must be related to the business (ie, dental chairs will be exempt, however a table and chairs for the waiting room will not be exempt). Supplies are also not exempt. For example, dental X-ray film is not exempt, while the X-ray machine is exempt.

5. The Ole proves (to the satisfaction of Meches) that he/she works in the business and that he/she has at least 50% control of the business. You must show partnership agreement or contract if there is a partner. The contract must indicate, in the event the partnership is dissolved, the tax exempt equipment reverts to the ownership of the Ole.

6. The Ole may not sell this equipment or transfer it to any other person before the end of five years from the date of Customs clearance.
If the Ole sells or transfers the equipment during the five year period, taxes must be paid.

7. To ensure all of the above, Meches requires the Ole to deposit guarantees (bank guarantees or cash deposits) equal to duties and taxes payable, until Meches verifies the equipment is actually used by the Ole, for the stated business purpose.

Please note: once you register as Atzmai, it may be difficult to "unregister".
It is generally not worthwhile to register as Atzmai unless you intend to run a business.