How to Open an Exempt Dealer Online: Documents and Timelines
Open an exempt dealer in one evening: a questionnaire, five documents, and registration with three offices.
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In short
To open an exempt dealer online, you need to choose the type of business, fill out a short questionnaire, upload documents, and make a payment. The process takes less than 5 minutes, and approval from the authorities is received within 3 business days.
You can open an exempt dealer online in one evening, without leaving home: choose the type of business, fill out a short questionnaire, upload documents, and pay. Registration with VAT, Income Tax, and National Insurance is done for you, and approval from the authorities arrives within 3 business days.
Who is an Exempt Dealer Suitable For?
An exempt dealer is suitable for those starting a small business: private tutors, professionals, designers, and anyone working on the side in the evenings. An exempt dealer does not add VAT to their prices and does not submit monthly reports to VAT.
The main condition is an annual turnover that does not exceed the exempt dealer threshold, which the Israel Tax Authority updates every year. Check the current amount on the Israel Tax Authority website before submission. Additionally, in some professions, you cannot be an exempt dealer, and the authorities require a licensed dealer from the start. If most of your clients are companies that need a tax invoice, a licensed dealer may be more suitable for you.
What Documents Are Needed to Open an Exempt Dealer?
All documents are uploaded in the questionnaire, as photos from your phone or scans, in JPG, PNG, HEIC, or PDF format up to 10 MB:
ID card, both sides
Open form with address
Check or bank account management confirmation
Driver's license or Israeli passport
Proof of business readiness: rental agreement, first order, website, or business card
An accountant checks the documents before submission to ensure the application does not return from the authorities due to unclear photos or a form without an address. Sometimes the authorities request additional documents, depending on the field of activity. If this happens, we will inform you exactly what is missing and how to complete it.
How It Works: An Example of One Evening
An illustrative example. An English private tutor, whose Hebrew is still not strong, already has her first students. In the evening, she opens the questionnaire in Russian, selects exempt dealer, and fills in the details: ID number, address, business name, activity description, and expected turnover. It takes less than 5 minutes.
Then she takes photos of the documents and uploads them directly in the questionnaire. Payment is made only after all documents are uploaded. No waiting in government offices and no phone calls: we handle the submission to the three offices for her, and she can see the registration progress in her personal area.
How Much Does It Cost and How Long Do You Wait?
Registering as an exempt dealer starts at ₪175. VAT is added to the service price, and the final amount is displayed before payment. You can add approvals for working with the authorities, a guide for managing an exempt dealer, or a meeting with an accountant.
Step | How Long | Who Performs |
|---|---|---|
Questionnaire and Documents | Less than 5 minutes | You |
Registration with Three Offices | Within 24 hours | Us |
Approval from the Authorities | From 3 business days | Tax Authorities |
The duration of approval depends on the tax authorities and not on us. In the end, you will receive an exempt dealer certificate, which will appear in your personal area.
After Opening: Receipts and Reports
For every payment received, an exempt dealer issues a receipt to the client. Only licensed dealers and Ltd companies can issue tax invoices. Once a year, you submit an annual report to Income Tax and a declaration of turnover to VAT, and you pay advances to National Insurance as self-employed. It’s advisable to keep all receipts and invoices for expenses from day one, as they are required for preparing the annual report.
It’s easy to issue receipts in the CPA Digital (opens in a new tab) system, and reports can be sent to the accountants of our partner EA&CO, with prices on their website (opens in a new tab). Ready to get started? Open the questionnaire and choose exempt dealer.
Frequently Asked Questions
Can You Open an Exempt Dealer Without Hebrew?
Yes. The questionnaire on the website is available in Hebrew, Russian, and English, documents are uploaded as photos, and we handle the submission to VAT, Income Tax, and National Insurance ourselves. Hebrew will only be required at most for conversations with your clients. If something in the questionnaire is unclear, you can ask us on WhatsApp (opens in a new tab) for clarification.
Can You Work as an Employee While Being an Exempt Dealer?
Yes, it is allowed to combine a salary and an exempt dealer, and many start this way. It’s important to know that income from work and income from the business are combined in the income tax calculation, so the total tax rate may be higher than on the salary alone. It’s advisable to consult with an accountant in the first year on how to report both incomes correctly.
What Happens If the Turnover Exceeds the Threshold?
In such a case, you need to switch to a licensed dealer: update VAT and from that moment add VAT to prices. It’s better to do this immediately when you see that the turnover is about to exceed the threshold, rather than at the end of the year. Keep track of the amount of receipts throughout the year, so the excess won’t surprise you and you’ll have time to prepare in advance.
How Much Does It Cost to Open an Exempt Dealer?
Registration through start.business (opens in a new tab) starts at ₪175, and VAT is added to the service price. You pay only after the documents are uploaded in the questionnaire. Approvals for working with the authorities, a guide for managing an exempt dealer, and a meeting with an accountant can be ordered separately, at that stage of payment. The final amount with VAT is displayed before you confirm the payment.
When Can You Issue the First Receipt to a Client?
After registration with VAT and receiving the exempt dealer certificate. Before that, you cannot receive payment as an exempt dealer, so it’s advisable to plan your first clients for the days after the authorities' approval. The receipt is issued as soon as payment is received, for the entire amount received. If the client pays in installments, a receipt is needed for each payment.