Licensed Dealer (Osek Murshe)

The main difference is the income limit and VAT obligations. Osek Murshe (Licensed Dealer) has no income limit but must charge and report VAT. Osek Patur (Exempt Dealer) is limited to 120,000 NIS annually but doesn't charge VAT.

You must upgrade to Osek Murshe when your annual income exceeds 120,000 NIS, or if you voluntarily choose to do so for business reasons (like claiming VAT refunds or working with larger clients).

VAT reporting frequency depends on your turnover. Most Licensed Dealers report bi-monthly (every two months). High-turnover businesses may need to report monthly. Reports are submitted through the Tax Authority's online system.

Yes, as an Osek Murshe you can deduct legitimate business expenses and claim VAT refunds on purchases related to your business. This includes equipment, supplies, professional services, and other operational costs.

While not legally required, it's highly recommended to work with an accountant. They help ensure compliance with tax laws, maximize deductions, and handle VAT reports correctly. Many Osek Murshe hire accountants for peace of mind.

If you were an Osek Patur and exceed 120,000 NIS, you'll automatically be reclassified as Osek Murshe and must start charging VAT. We can help you transition smoothly and set up proper VAT procedures.