Exempt dealer
A dealer whose annual transaction turnover does not exceed NIS 122,833 (2026). Exemption from collecting VAT from customers and submitting VAT reports, but is not allowed to deduct input VAT.
Authorized dealer
A dealer whose turnover exceeds the ceiling, or who has chosen to register as an authorized dealer. Must collect VAT, submit reports, and may deduct input VAT.
When should you be licensed even under the ceiling
- Most customers are business (B2B)
- High expenses with VAT
- Desire to deduct VAT on equipment and vehicle
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.