Key Takeaways
- An ecommerce accountant handles your VAT and income tax reporting, advises on your business status and tax planning, and knows issues specific to selling online, such as VAT on foreign sales, Amazon FBA and crypto payments. No law requires a self-employed person to use an accountant, and the duty to file and pay on time stays with the business owner.
- In Israel, an Osek Murshe's exports of goods and services to foreign residents are generally zero-rated, not exempt: they are reported, and input VAT can be deducted. Selling to private consumers abroad may also require registering for VAT in the destination country.
- Income from selling digital products such as courses, software and e-books on an ongoing basis is business income, not passive income. It is taxed at the regular income tax rates and usually carries National Insurance (Bituach Leumi) contributions.
- A payment received in cryptocurrency is reported as regular business income at the crypto's shekel value on the transaction date. Only the change in its value until you sell or convert it is taxed separately, usually as a capital gain.
- Keep is a digital bookkeeping service: every plan lets you issue documents, take payments by card and bit and see your business data in one place. The recommended plan (₪105 a month plus VAT for an Osek Patur) adds a personal accountant, reports to the tax authorities (for an Osek Patur, the annual VAT report) and plugins for Wix and Shopify.
Why You Need an Ecommerce Specialist Accountant
The world of ecommerce can be confusing, especially when it comes to managing finances and taxes. Ecommerce businesses, unlike traditional businesses, face unique challenges that require specific expertise. These are businesses that need to deal with customers and suppliers from around the world, handle currency exchange fluctuations, understand tax laws in different countries, and more.
Dealing with Tax Authorities
Tax reports, withholding tax where it applies (for example when you employ staff), VAT management, and annual report submissions are just some of the complex tasks an ecommerce accountant can handle for you. Ecommerce businesses must comply with all relevant regulations and laws, even when operating in the international arena. An ecommerce accountant can help keep your reports accurate, on time and compliant with the law, but the legal duty to file and pay on time stays with you.
Tax Consulting and Planning
An ecommerce accountant can build a tax strategy that maximizes your profits and helps you save money. This includes adapting the business structure to your needs, utilizing tax benefits, optimal tax payment planning, and more. They can advise you on whether to register as an Osek Patur or Osek Murshe or to open a company, and which option fits your business.
Financial Management
Cash flow monitoring, bank account management, and handling supplier and customer relations are all integral parts of an ecommerce accountant's services. Proper financial management is crucial for any business's success, especially for ecommerce businesses characterized by high dynamism.
Deep Understanding of Ecommerce
An accountant specializing in ecommerce knows the various platforms - Amazon, eBay, Shopify, and other commerce sites. They understand ecommerce marketing methods, payment processing options (PayPal, Stripe, and more), and follow new trends in the field. This knowledge enables them to provide accurate and tailored advice for your business.
Before choosing a status, check your expected turnover: Osek Patur is available only up to an annual turnover of ₪122,833 (as of 2026), including income from foreign clients. Some professions, such as lawyers, engineers and tax consultants, must register as Osek Murshe at any turnover. Osek Patur and Osek Murshe are VAT statuses, not separate legal entities, so the owner is personally liable for the business's debts. Separating business debts from personal assets takes a limited company, and even that protection is not absolute.
Unique Tax Issues in Ecommerce
Ecommerce businesses face unique taxation issues that are important to be aware of:
VAT on International Transactions
When selling products or services to customers outside Israel, you need to understand VAT laws in the destination countries. In Israel, an Osek Murshe's exports of goods and services to foreign residents are generally zero-rated (0% VAT under section 30 of the VAT Law), not exempt: you report them in your periodic VAT return and can deduct input VAT. In the destination countries, mainly on sales to private consumers, you may need to register for local VAT, collect it and report it to the tax authority there. An ecommerce accountant can help you understand relevant laws and manage VAT correctly.
Taxation of Digital Product Sales
If you sell digital products such as online courses, software, or e-books on an ongoing basis, the income is business income, not passive income: you report it as a self-employed person (Osek Patur or Osek Murshe), it is taxed at the regular income tax rates, and you usually pay National Insurance (Bituach Leumi) contributions on it. An ecommerce accountant can help you plan your taxes optimally.
Dropshipping Taxation
Dropshipping is a business model where you sell products from other suppliers without holding inventory. It can be a profitable model but poses unique tax challenges that an experienced accountant can help you navigate.
Amazon FBA Taxation
Amazon FBA (Fulfillment by Amazon) is a convenient service where Amazon handles storage, packaging, and shipping. However, it poses unique tax challenges, including VAT obligations in the countries where your stock is stored in Amazon warehouses (import VAT and, in some cases, local VAT registration) and managing VAT on international sales.
Cryptocurrency Taxation
If you accept payments in cryptocurrencies, the Israel Tax Authority treats this as a barter transaction: the sale is reported as regular business income at the shekel value of the crypto on the transaction date, and an Osek Murshe charges VAT on it as usual. If you later sell or convert the crypto, the change in its value since you received it is taxed separately, usually as a capital gain (Income Tax Circular 05/2018). An ecommerce accountant can help you report cryptocurrency transactions correctly.
Before an accountant can deal with these issues, it helps to map where your income comes from: which platforms you sell on, to which countries, whether your customers are businesses or private consumers, and where your stock is stored. The answers decide whether you need a foreign VAT registration and how each sale is reported. The sales and fee reports your platforms produce are part of your business records, so keep them for at least 7 years from the end of the tax year.
How to Choose an Ecommerce Accountant
Choosing an accountant is an important decision. Here are some tips:
- Experience and specialization - Look for an accountant with proven experience working with ecommerce businesses. Check if they know the relevant platforms and unique tax issues.
- Availability and communication - Ensure the accountant is available for questions, has open communication, and reasonable response times.
- Services - Check what services are offered: bookkeeping, tax authority representation, financial consulting, international VAT management.
- Technology - Check if the accountant uses advanced technological tools. Cloud systems, easy access to information, and integrations are significant advantages.
- References - Ask for recommendations from other ecommerce business owners.
- Price - Compare prices, but remember that a very low price may indicate low service quality.
At the first meeting, ask specific questions: which platforms the accountant works with, whether they have handled exports or foreign VAT registrations, and what exactly the monthly fee includes. Many accountants bill the annual report separately, so ask for a written quote that lists what is included and what costs extra. Also check that the person is licensed to represent you, such as a certified accountant or a licensed tax adviser, because only licensed representatives may act for you before the tax authorities.
Keep - By Your Side Every Step
Keep is digital bookkeeping, and several of its tools also suit ecommerce businesses:
- Digital documents - On every plan you issue unlimited receipts, invoices and other income documents, including automatically, as digitally signed PDFs. Only an Osek Murshe can issue a tax invoice.
- Payments and card clearing - On every plan you send clients payment requests or payment pages, charge them by credit card and bit, and connect card clearing to your website through an API. The recommended plan also includes plugins for Wix and Shopify.
- Income and expense tracking - On every plan, all your business data is in one place: income, expenses and profit for a date range you choose, plus the status of documents and payments and which clients still owe money. On the recommended plan you upload business expenses in a click, as a photo or a file.
- Tax authority reports - The recommended plan includes reports and payments to the tax authorities and VAT reports (for an Osek Patur, the annual VAT report). The annual income tax report is offered at a special price and is not included in the monthly fee.
- Professional support - The recommended plan gives you a personal accountant for professional guidance and representation before the tax authorities.
- Transparent pricing - For an Osek Patur, ₪39 a month on the basic plan and ₪105 a month on the recommended plan, plus VAT. An Osek Murshe adds ₪123 a month including VAT, and opening a file with the authorities is a one-time ₪99 plus VAT.
The basic plan suits sellers who mainly need documents and card clearing, including clearing on their own website through the API. If you want the Wix or Shopify plugin, a personal accountant or reports to the tax authorities, you need the recommended plan. Plans have no commitment and can be switched at any time at no cost, so you can start on the basic plan and move up as the business grows.
Summary
Running a successful ecommerce business requires deep understanding of taxation and accounting issues unique to the field. No law requires a self-employed person to work with an accountant, but if you sell abroad, across several platforms or through newer payment methods, an accountant who specializes in ecommerce can save you money, help you avoid costly mistakes, and let you focus on what really matters: growing your business.
With Keep, your documents, payments and business data are in one place, and the recommended plan adds a personal accountant for professional guidance.
It is worth talking to an accountant before a change, not after it: before your first sale abroad, before sending stock to an Amazon warehouse, or before accepting a first crypto payment. Each of these steps can create new reporting duties, and checking them in advance saves correcting reports later.
Frequently Asked Questions About Ecommerce Accountants
Does an online seller in Israel have to use an accountant?
No. No law requires a self-employed person, whether Osek Patur or Osek Murshe, to hire an accountant, and you may keep your books and file your reports yourself. An accountant's approval is required mainly for a company's annual report. If you sell abroad, through Amazon or for crypto, professional support can help you avoid reporting mistakes.
Do I need to charge VAT when selling to a customer abroad?
In Israel, an Osek Murshe who exports goods or provides a service to a foreign resident generally charges VAT at 0% and reports the transaction in the periodic VAT return. An Osek Patur does not charge VAT on foreign sales either, and that income counts toward its turnover ceiling. Abroad, it depends on the country: on sales to private consumers, for example in the EU and the UK, an Israeli seller may have to register for local VAT.
How is income from selling online courses taxed?
Income from selling courses, software or e-books on an ongoing basis is business income, which you report as a self-employed person. It is taxed at the regular income tax rates, which start at 10% (as of 2026). If you meet National Insurance's self-employed tests, you also pay National Insurance (Bituach Leumi) contributions on it.
Does stock in Amazon FBA warehouses in Europe or the UK require a VAT registration there?
Often, yes. When the goods enter the country where the warehouse is, import VAT is usually due, and in the EU a seller from outside the EU that holds stock in a member state must register for VAT there. In the UK the rules depend on the type of sale and customer. The US has no VAT and different rules apply there, so before you send stock to any country, it is worth checking its rules with an accountant.
What is the difference between an ecommerce accountant and Keep?
An accountant is a professional who guides your business and represents it before the tax authorities. Keep is a digital bookkeeping system where you manage your business documents, card clearing and data. The recommended plan adds a personal accountant for professional guidance and representation before the tax authorities, so the system and the support sit in one place.
