I want to share an important update with you:
The cash limit for paying for goods is going down from 11,000 to 6,000 NIS from August 1st 2022.
What this means:
If you buy a phone for 3,000 NIS – you can pay with cash as it’s under the 6,000 NIS limit.
If you buy a kitchen for 50,000 NIS you can pay up to 10% in cash as the deal is over the 6,000 NIS limit. If it’s the lower of the two limits of 6,000 or 10% so you would be able to pay 5,000 NIS in cash.
Any business must register how it got paid and note that 5,000 was cash and the rest bank transfer or check etc.
If you buy a kitchen for 100,000 NIS you can pay up to 6,000 NIS in cash, but not more.
All checks over 5,000 NIS must have the name written on them, all checks from a business for any amount must have the name written on them.
Between two individuals- the cash transaction limit is 15,000 NIS.
If you buy a used item from a neighbor for under that sum, you can pay in cash.
In the case of buying a car where the deal is between two individuals, the cash limit is 50,000 NIS.
(Disclaimer: Please read the law yourself, this is what I understood but I can’t be held responsible if this is not accurate)
What does this mean for most people:
Most people don’t use much cash, so very little.
But to those who DO use cash, note the upper limits and make sure to keep within their limits.
For more tips and updates, make sure to join the Living Financially Smarter in Israel Facebook group.