Application to register as an Exempt Dealer via the Internet

Small businesses that can register as VAT-exempt dealers can submit an application to open a VAT and income tax file. If dealers employ salaried employees or rent real estate for the purposes of their business activity, they must also open a deductions file for the declaration the payments made to employees or for rent.

Who can submit the application

Those who meet the following conditions: 

• The expected annual turnover from transactions must not exceed the fixed amount for that year, as stipulated in the provisions of the VAT law concerning an exempt dealer (in 2026 - 122,833 NIS). 
• The business is not listed in Regulation 13 of the Value Added Tax (Registration) Regulations, which determines the types of professions requiring the opening of an authorized dealer file (for example, liberal professions: lawyers, accountants, and others).

What to attach

• Lease or purchase agreement (if the business is run in a leased property).
• Married couples living separately who wish to apply individually, must attach form 4440 signed by a lawyer.
• Bank Account Management Confirmation
•  Identity Card

The service is provided free of charge 

How to apply

The application can be filed through the internet site of the tax authority - in the application “Opening a tax-exempt dealer file”.

Internet

Fill out the application to open a tax-exempt dealer file online at the website of the tax authority, attach the requested documents and send.

What happens next

• After sending the application, the sender will receive, at each stage of the opening of the file, an SMS message, and an email with an update about the application.
• You may contact the tax authorities through opening a file, by clicking the "My messages" button in the top left-hand corner of the (system link).
• You can check the status of the application through, opening a file.