Shivat Zion



פתיחת עוסק פטור

K2214 / Version 1 / 02.07.2023 / English

The Osek Patur is an individual entrepreneur opening a business without forming a corporate entity (company or partnership). He is therefore exempt from VAT. If you intend to be a self-employed worker in Israel, check here what you must do to be properly registered as such.

First verify that your business qualifies as an Osek Patur by meeting the following criteria:

The annual transaction turnover is less than ₪‎107,692 per year (2023). The exact limit is reset annually.

The business does not operate in certain fields (Professions, such as architect, engineer, private detective, lawyer, accountant, doctor, management advisor, insurance agent, psychologist, dentist, medical clinic, university professor & lecturer, translator & interpreter, artistic performer, exam administrator (preparing, supervising, reviewing/marking), author, instructor of a driving school, real estate agent, teacher at a school or gan, car dealer).

The business must not be registered as a limited company.

The Step by Step Process:

Fill out form 821 to open a VAT case.

Fill out form 5329 to open an income tax file.

Go to this website and submit the above mentioned forms. Attach a copy of the identity card of both spouses, a professional qualification certificate if any, and a bank account management certificate.

Once you are registered as Osek Patur, you must register with Bituach Leumi by filling out the following online form.


Important Notes

Unqualified Field of Business

  • If your field of business does not qualify for an Osek Patur (see list in B), you must register as an Osek Murshe (not VAT-exempt).

Professional Assistance

  • You might prefer to do the entire process through a qualified tax consultant or accountant. He can also help you with the annual reports.

This guide was written under the guidance of Irit Scharf, accountant and tax advisor.