Q: Can you explain about Value Added Tax or VAT (mas erech nosaf or Mam").

A: VAT is a "pass through" tax. In other words, a business collecting VAT, does so on behalf of the government and passes it through to the tax authorities. Currently 16.5%, it is assessed on all services rendered in Israel and all products sold or imported into Israel.
Of course, olim are exempt from VAT on household goods imported into Israel in one of the three tax exempt shipments. But, if you import
something that is not tax exempt, such as a fax machine or garden furniture, you will have to pay VAT (and customs) on the value of these items even if they are used.
VAT is also charged on services rendered in Israel, such as storage or local trucking, etc.
If you are not an oleh, then VAT will be charged on the value of the items in your shipment, the value of the ocean freight and an assumed value of insurance (even if you did not take insurance!)
Please remember, in most cases when VAT is charged, customs will also be charged.
When deciding to ship your things to Israel, it is very important to take the various taxes into account. They can be a very significant part of the cost of shipping. Your agent in Israel should be able to give you a good idea of what your taxes will be.