VAT= “Value Added Tax”.
VAT is added on to many of the items and merchandise tourists buy while visiting Israel.
If you are traveling under 'tourist visa' (B2/B3/B4 type), you can avoid an extra payment of 17% on your stay by sending us a copy of your border control pass (the small paper you get when entering Israel, also called 'visa').
It looks like this:
Please reply back to our message with this photo.
Our finance team will review the document and will process a refund of 17% (if already paid).
The refund shall arrive within 5-7 business days.
When you make a purchase, ask the store owner for a special tax-refund invoice. It must contain the printed name of the store. You will need to have the invoice, the receipt and the item with you when applying for the refund at the Airport.
Full info can be found here