VAT in Eilat: Is Shopping Really Exempt and What to Check
In short: As we understand it, and under current policy, Eilat is a free trade zone, so VAT in Eilat is handled differently than in the rest of the country: some products and services carry no VAT. But not everything is exempt and the rules change, so ask the seller and check the receipt before you pay. This is general information, not tax advice.
You're standing at the register with a bag in your hand, and the price on the tag looks great. Right before you pay, the question comes up: is that already the full price, or will something be added?
VAT in Eilat: What Exactly Is Exempt and What Isn't
Eilat is defined as a free trade zone. You can read about the city's history and status in the Wikipedia article on Eilat. In practice, this means that certain taxes, VAT among them, apply differently in the city.
It's important to understand that the exemption is not uniform. There is a difference between types of products, between products and services, and between types of customers. The rules may also change from time to time.
So there is no single yes or no answer. There is one simple rule: what's written on the receipt is what counts.
Is Shopping in Eilat Really Exempt From VAT?
The honest answer is: some of it is, and not all of it. As we understand it, both in the past and today, shopping in Eilat benefits from a special arrangement, but its scope depends on the product and on the policy in effect on the day of purchase.
Here is what's worth remembering:
A product you have your eye on in a store: ask whether the price includes VAT and whether it includes the exemption.
A product shipped to you at home outside Eilat: the rules may be different, so ask before you pay.
A store in one of the shopping centers: don't assume every store operates the same way.
A sale in the shop window: check whether the 'final price' is really final.
Local tip: Don't rely on a friend's memory from a few years ago. Ask at the register and ask to see how it appears on the receipt.
VAT Exemption in Eilat: How to Check Before You Buy
It takes less than a minute, and the savings can be real. Do this on every big purchase.
Ask the seller whether the price on the tag includes VAT.
Ask whether the exemption applies to this specific product, and whether there are conditions.
Ask to see the final amount before your card is charged.
Keep the receipt. It is your only documentation if there is a problem.
Compare the price with one more store, and for expensive items, with the online price too.
For general information about the city and what's happening there, you can use the Eilat tourism website. If the subject matters to you financially, professional advice from an accountant will help more than any guide.
Shopping in Eilat: What's Actually Worth Checking
Not every purchase is worth the effort. Here is a simple way to think about it.
Expensive items
On an item costing several hundred shekels or more, the difference can be significant. That's where it's worth checking and comparing.
Supermarket groceries
On everyday shopping the difference per item is smaller, but it adds up over several days. We wrote about this separately: Supermarket in Eilat: where to buy groceries and how to save on VAT.
Souvenirs and swimwear
These are small purchases. Convenience is what matters here, and there's no point running between stores for a few shekels.
How to Fit Shopping Into Your Vacation Without Wasting Time
Shopping shouldn't take up a whole day. The right order saves time and money.
Buy the heavy and expensive items on the last day, so you don't have to carry them around.
Buy groceries on arrival day, and the kitchenette in your apartment is ready to use.
Breakfast in the apartment and dinner out leaves room in the budget for shopping.
If you're driving, you need to know where to park. Eilat apartment with free parking explains what to check.
Insider tip: Arriving before 15:00 with bags from the supermarket? The building on Nevi'ot Street has a dedicated luggage room. At the Tsofit complex, bags can wait in a hallway covered by a security camera.
Insider tip: Every apartment has a kitchenette with a fridge, stove, kettle and microwave. Guests usually eat breakfast in the apartment and go out for dinner, which saves money without giving up anything.
What We See in Our Booking Calendar (as of 10.11.2026)
If you're planning a vacation around shopping, the date affects the price more than the store does. Here is what we see:
Studio 1 (for couples, up to 4 guests): from about ₪285 per night midweek (as of 10.11.2026, before the 5% direct booking discount; the price varies by dates).
On Thursday and Friday nights the same studio starts at about ₪405 per night. On average, weekend nights cost about 29% more than midweek nights with us.
The 2 bedroom apartment, suitable for a family of 4 or 5, also starts at about ₪285 per night midweek.
The weekend of 12.11.2026 (two nights): as of our calendar check on 10.11.2026, all 9 apartments are booked. On 19.11.2026, 5 of 9 are left, and on 26.11.2026, 8 of 9 are left.
Hanukkah (arrival on 04.12.2026, 3 nights): 3 of 9 apartments are left, from about ₪465 per night.
What this means for you: if you're flexible, come midweek and you'll save more than any exemption would. For holidays, it's worth booking early. You can see all the options on our apartments page and check dates through direct booking.
Save: Booking directly at cityeilat.com takes off 5% automatically, with no coupon code. It's a fixed saving that doesn't depend on a store or a receipt.
Does the Apartment Price Include VAT?
The price shown on the booking page is the price for the dates you chose. We don't give tax advice here, so if you have a special question, write to us. General answers about payment, check-in and parking appear in the FAQ.
A tip if you're looking for a low total cost: also read Cheap Eilat vacation apartments, which explains what affects the price and how to pay less.
Frequently Asked Questions
Is all shopping in Eilat exempt from VAT?
Not necessarily. As we understand it, and under current policy, the arrangement applies to some products and services, and the rules may change. Check the receipt.
How can I tell whether the price in a store includes VAT?
Ask the seller directly and ask to see the final amount before paying. Keep the receipt.
Why is Eilat considered a free trade zone?
The city was defined that way to encourage tourism and development in the area. For historical details, see the Wikipedia article on Eilat.
Is it worth traveling to Eilat just for shopping?
In most cases, no. It's better to combine shopping with a vacation, and to check only on expensive items whether the difference justifies the effort.
Is this tax advice?
No. The guide is general and based on our understanding and current policy. For specific tax questions, consult an accountant.
Planning an Eilat holiday? Check availability and prices and book directly: the 5% discount is added automatically. Want to figure out how many days you need? Also read Eilat vacation: how many days do you need.
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