Information for Opening a Business in Israel

If you are an asylum seeker interested in opening a business in Israel, below is information to help you in registering as a Dealer (Authorized or Exempt*) for VAT purposes:

First, you must find an Israeli representative (an entity or a person with an Israeli ID number) who will be your contact person with the VAT Authority. The representative can be either an individual person or an Israeli company.

The representative will serve as the responsible party with the VAT authority in your place for purposes of handling VAT payments, submitting periodic reports, receiving funds (if they are due by law), and managing all of your obligations under the VAT law.

Documents you will need to prepare:

1. Your residence permit and work permit. (Important: The work permit must be valid for at least six months.)
2. Photocopy of the representative's ID.
3. Registration of the representative form (Form 22), which you will need to fill out together with your representative.
4. Application to open a file (Form 821) with the following documents attached:
   • Proof of a bank account existing in your name (you can provide the account management confirmation from the bank or a picture of a canceled check from your current account).
   • Business rental agreement, documents proving establishment of the business (for example, receipts for business equipment purchases, agreements with clients, etc.)- if such documents exist.

Form 22 and Form 821 are available for download from the Tax Authority's website.

How is the application submitted?

1. Schedule an appointment at the VAT office closest to your business or residence (see list at here) through their website (https://www.gov.il/he/service/scheduling-appointment-taxes) or the MyVisit app.
2. Arrive at your appointment at the VAT office with your Israeli representative, and bring all the documents mentioned above for receiving an identification number for the Israeli TAX Authority.
3. You may also submit the application through an accountant or tax advisor who is on the Shaam system.

After your application is approved:

• You will receive a username and password for the VAT website.
• You will receive instructions on when to report and pay VAT.
• You will receive a temporary registration confirmation, followed by an Authorized or Exempt Dealer certificate sent by mail.

It is hereby made clear that all of the above is based on information published on the Israel Tax Authority website and current practice. The foregoing does not constitute an exhaustive list, and the Tax Authority may require additional documents or approvals, at its sole discretion and according to the specific circumstances of each case. Furthermore, it is made clear that the Tax Authority may, at any time, modify and/or update its policies and guidelines.

*Under the current legal definition, an "Exempt Dealer" is a dealer whose annual turnover does not exceed NIS 120,000.