Don’t Worry, Be Happy!

Someone posted this as a comment somewhere on my blog, and I thought it can be halpful as a post. Bevakasha!

  1. ari Says:

    hi gidon.

    i’m planning on heading out to the tax offices now to register as an atzmai’i. any advice as i head down this potentially bankrupting, forcing-me-to-move-back-to-the-U.S.-shekeless-road?

  2. Gidon Says:
    Hi Ari,

    Good luck in your endeavors!

    I don’t know the nature and scope of the work you intend to do, but in general, registering as an atzmai is not potentially bankrupting!

    Especially, my “expertise” (sic) is about osek za’ir, which means small business, less than about 60,000 NIS a year (income or profit, or somewhere in between), about 5,000 NIS a month. If you make so little, then chances are the authorities will not require payments or even fines that will bankrupt you.

    This blog focuses on interfacing with bureaucracy, not financial success of your business. As a friend of mine once wisely said, he hopes he gets taxed a lot, because that means he is making a lot.

    If your business idea and execution are sensible and market-driven, then you will probably succeed.

    If you add advice from NBN, MATI, various blogs and websites to that mix, and don’t “jump over your pupik”, then you have a good chance at success, and will probably not be forced to move back to the US without a dime.

    I am sure you wrote some of your comment tongue in cheek, but keep your chin up, be optimistic, and good luck!

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2 Responses to Don’t Worry, Be Happy!

  1. sharona says:

    Some quick questions – all advice welcome.

    – what is the current ceiling for having to charge VAT?
    – I have part time employed work and part time self employed work – do I look at income from both of these jobs?
    – Excuse my complete and utter ignorance… but if I need to start charging VAT what do I do with it – do I need to pass it on to the tax office at the end of the year? Should I put this income in a separate account?

    If anyone can help or signpost I would be eternally grateful.

  2. Gidon Ariel says:

    Hi Sharona,

    Thanks for visiting and posting here. I hope others will respond, as I cannot offer an authoritative response.

    that being said:
    1. It’s not a ceiling, it is a floor. If you make less than some 64K NIS a year, you can be an osek patur. This means you are registered with the VAT office as being an odek patur, and you are not allowed to charge/collect VAT (nor deduct it from your VAT payments, which you do not make anyway… you get the picture).

    2. You will have to ask at VAT offices. My guess is that you can remain an oek patur in such a case if your receipted income as an osek patur is les than that 65K. Your employed work does not effect your VAT-exempt work.

    3. Again, if you opened a tik as an osek zair/patur, you have nothing to do with VAT until a year later, when they ask you if you can/need o/want to renew your status as patur. If you have a question, if you think you might be getting closer to the 64K a year income point, go to the VAT offices on Kanfei Nesharim and as someone.

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