When importing a car or purchasing a new car from a dealership using the Oleh benefit, there is a restriction on the car which allows only the importer/purchaser to drive the vehicle for 4 years from the import/purchase date.
In order to remove this restriction, one has a couple of options:
- Sell the vehicle to another Oleh who is within their timeline of eligibility for this benefit.
- Pay the Customs Authority the remainder of the taxes that were reduced as part of this process.
The following is a personal account of an Oleh who has shared their experiences during this process.
Alan Wellins, NBN 2008, shares his personal experience.
Having recently concluded a passport to passport transaction, I am happy to explain the steps that are involved in this process:
1. Agree on a price with the seller. To do so, buy a copy of the Yizchok Levi Car guide to see what is considered a fair price today, WITHOUT the Oleh discount. You can then work out the depreciation from the new price. Ask the seller how much he paid for the car when it was new, then apply the percent of depreciation to calculate what the price should be.
2. Find a time when both of you can go to the Meches (Customs Authority) office. You will both need to bring your individual Teudot Oleh and Teudot Zehut, and the seller needs to bring his car documentation. There is no need to make an appointment, though you might want to double-check their hours before you go. When we went there, there was no queue at all! (The meches office does reserve the right to decide if there are any taxes to pay – this is unusual, but something to be aware of.)
You will be given a document which gives clearance to the Misrad Harishui to register the transfer. Both of you need to go to the Misrad Hareshui, but before you go, make sure that the Misrad Harishui’s computer has received electronic confirmation from Meches. You will need to ask Meches exactly when this will happen so you don’t make a wasted trip. (We made 2 such wasted trips).
3. Go to Misrad Harishui together. You will need your passports as well as your Teudot Zehut, Teudot Oleh, the Meches document and the car registration documents. Take a queue number and wait. You will be given a piece of paper to take to the post office and pay a registration change fee of 207 NIS. You may choose to split the cost between you.
4. Go back to the Misrad Harishui Office. Bring the receipt from the post office in order to conclude the transaction.