Open an Exempt Dealer file with CPA.DIGITAL
The simplest way to start a business in Israel. Fast registration, no VAT obligation and minimal bureaucracy.
What is an Exempt Dealer and who is it for?
An Exempt Dealer is a tax status for self-employed whose annual income does not exceed the threshold set by the Tax Authority. In this status there is no obligation to charge VAT, so reporting is simpler.
The track suits freelancers starting out, professionals serving private clients, and entrepreneurs who want to test their business idea without heavy bureaucracy.
Even those working full-time and opening a small side business can enjoy the simplicity of an Exempt Dealer, as long as annual income from the business stays below the threshold.
How does the online Exempt Dealer registration work?
The process is done with two main authorities: Income Tax and National Insurance. Unlike a Licensed Dealer, no VAT file is required.
Through the CPA Digital online system you can submit all required documents, get confirmation of file opening and start operating within a few business days.
What does the process involve?
- Opening an Income Tax file. A declaration of starting business activity as an Exempt Dealer, including business details and income forecast. Tax advances are then set based on actual activity.
- National Insurance registration. Setting the status as self-employed for National Insurance and health insurance payments. The amount is set according to reported income.
- Issuing the Exempt Dealer certificate. After registration is complete you receive an official certificate that lets you start operating and issuing receipts to clients.
Start Your Business Journey
The easiest way to start your business in Israel. Register as an Exempt Dealer today.
Pros and cons of Exempt Dealer
Before deciding, it is important to understand the implications of this track compared to others.
יתרונות
- Simple and fast registration
- No VAT obligation — more attractive prices for private clients
- Simple, basic reporting
- Low formation and maintenance costs
- Convenient start for testing a business idea
חסרונות
- Limited annual income ceiling
- Cannot reclaim VAT on expenses
- Full personal liability
- Less suitable for working with large businesses
- Switching to Licensed Dealer becomes mandatory once the threshold is crossed
Exempt Dealer or Licensed Dealer — what is the difference?
The main difference is the VAT obligation. An Exempt Dealer does not charge VAT and cannot reclaim it, suiting low-volume businesses with private clients.
A Licensed Dealer must charge VAT but enjoys refunds on business expenses. The choice depends on income volume, client type and business growth plans.
How much does it cost to maintain an Exempt Dealer over time?
Beyond the cost of opening the file, you should account for ongoing payments: National Insurance and sometimes income tax advances when income is high.
You should also account for basic bookkeeping and annual report filing. CPA Digital offers all these services at an accessible price.
For whom is opening an Exempt Dealer the right choice?
Exempt Dealer is the ideal solution for those starting their business journey, or those who prefer a simple track with less bureaucracy.
- Freelancers starting out
- Private tutors and independent consultants
- Service providers for private clients
- Entrepreneurs testing a business idea
- Small home-based business owners
- People with a full-time job and a side business
Open an Exempt Dealer online with CPA Digital
At CPA Digital opening an Exempt Dealer becomes simple and clear. Our online system centralizes every step required for registration with the authorities in one place.
Our team makes sure registration is performed correctly from day one, without you having to visit offices or deal with bureaucracy. This way you can start operating quickly and confidently.