Accountant for Osek Patur (Exempt Dealer) in Israel: 2026 Guide

The 2026 ceiling is ₪122,833 of turnover, not profit

For tax year 2026 you can stay patur while yearly turnover stays at or below ₪122,833 (₪120,000 in 2024 and 2025; updated every 1 January). Turnover means everything clients paid you, before expenses. For example, if you took in ₪125,000 in 2026 and spent ₪40,000, you are over the limit even though your profit is far lower.

"Exempt" means no VAT, nothing more

As a patur you do not charge VAT and cannot reclaim VAT on expenses, so you issue receipts rather than tax invoices. For income tax and National Insurance you are self-employed like anyone else. In 2026 National Insurance is 7.70% of monthly income up to ₪7,703 and 18% above it, and self-employed people aged 21–60 who have been VAT-registered for at least six months have a mandatory pension deposit due by 31 December.

What you file every year

• An annual turnover declaration to VAT by 31 January.
• An income tax return. For tax year 2025, the Tax Authority's online deadline was 30 June 2026; filing through a representative usually allows more time.
• Or, on the small business owner track: a tax coordination by 31 December and a short annual report by 31 March of the following year.
• National Insurance advances, and income tax advances if set for you.

The 30% small business owner track

Since 2025, a patur (or murshe) with turnover up to the ceiling can deduct a flat 30% of turnover as expenses instead of proving real costs. It usually also removes the full annual return, advances and capital declaration, and keeps your credit points. New patur files opened online join it by default unless you opt out. It does not pay off if your real expenses exceed 30%, and you cannot switch in and out every year.

Who cannot be patur

Under the VAT registration regulations, certain professions must register as osek murshe regardless of turnover, including lawyers, accountants, doctors, architects and tax advisers. If you work in a regulated profession, check before you open the file.

Clients abroad and crossing the ceiling

Working for foreign clients does not stop you from being patur, but every shekel or dollar counts towards the ceiling. Once you cross it, or expect to, you must update VAT and become an osek murshe, charging 18% from that point. Finding out only at year-end can leave you owing VAT you never collected, so talk to me before the invoice that takes you over.

Do you really need an accountant?

Honestly, not always for ongoing work. A patur with one income source and few expenses can manage with very little help. It is worth it when you also have a salary, when you are near the ceiling, when you are choosing between the regular and the 30% track, or when a letter arrives from the tax office. According to published market comparisons (September 2026), monthly service for a patur typically runs ₪100–150 plus VAT, and an annual report around ₪1,000 plus VAT at the median. These are market ranges, not my prices; I quote after a first conversation.