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I am looking for a good camera shop in Haifa or Tel Aviv.
I heard that i can get pay taxes back.

Anyone any recommendations?

Thanks

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Not all shops participate in the VAT refund scheme. I can't recommend any specific shops, but you might have to decide between buying good equipment and getting the VAT back. You may not be able to do both.
If the shop does participate in this scheme, you must fill in all the forms in the shop, and then take the forms to the VAT refund office at the airport. The goods you buy must be in an unopened box when you hand in the forms at the airport, meaning that you cannot use the camera in Israel before taking it out of the country.

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