VAT (Value Added Tax) is like sales tax.
Tourists
are exempt, which means saving 15.5%, but the base price may be
higher. Hotels do not charge VAT.
If you're going to buy big, expensive items (electronics?) it could be worth your while to ask for a VAT refund form everywhere you buy things, and then you can get it all refunded in one lump sum at the airport. If you do not have a form from a store, it's pretty much impossible that you will get the VAT refunded.
Eilat is a VAT-free area (even for Israelis), though there's talk of repealing that.
