1. The rate is 18%, not 17%
As of 1 January 2025, Israel's VAT rate increased from 17% to 18%. All pricing, offers, and reporting should be based on 18%.
ℹ️ This page explains general VAT principles for AliExpress Israel sellers. Specific onboarding requirements and current platform policy are based on official platform documentation. Unsure about your situation? Contact Maya.
VAT on AliExpress Israel — What You Need to Know
18% rate, self-reporting, familiar process — a clear overview of every VAT question that local Israeli sellers care about.
Two-line summary
- Israel VAT rate: 18% (effective 1 Jan 2025, previously 17%).
- Sellers report VAT themselves to the Israeli Tax Authority. The platform does not withhold VAT at source.
3 things to know
2. The platform does not withhold VAT at source
AliExpress does not withhold or file VAT on your behalf. VAT on your sales is reported by you to the Israeli Tax Authority according to your regular reporting cycle (monthly or bi-monthly) — exactly like any other commercial activity.
3. The consumer price already includes VAT
You submit a supply price to the platform. The platform adds margin and displays the final consumer price including 18% VAT. The amount you receive is the net revenue after VAT and platform commission are deducted. The full breakdown appears in your store's management reports.
What to do before joining
The process is the same as how you handle VAT today — just with an additional sales channel.
1. Inform your accountant
Tell your accountant you're joining AliExpress. They'll adapt the monthly reporting process to include sales data from the platform.
2. Prepare your VAT document
You'll need an official document showing your VAT number for verification during onboarding. Full details of all required documents are on the checklist page.
See full document checklist →Frequently asked questions
Won't this complicate my reporting?
No. The same VAT reporting process you already do, just with sales data from one additional channel. No new legal requirements.
Is 18% added on top or deducted from my supply price?
The platform adds margin and displays the final consumer price including 18% VAT. The amount you receive is the net revenue — after VAT and platform commission are deducted.
Can I issue VAT invoices to the consumer?
You are the one who issues the VAT invoice in accordance with Israeli law. AliExpress does not issue invoices on your behalf — the platform provides sales data (amounts, VAT breakdown, order details), and you or your accountant use this data to issue invoices and report to the authorities.
Next step
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